Dollar tree He said Wednesday that he is gaining market participation with consumers with higher income and could increase the prices of some products to compensate for the rates of President Donald Trump.
The Discount Retail CEO, Michael Creedon, said the company is seeing “value search behavior in all income groups.” While Dollar Tree has always trusted low -income buyers and obtains about 50% of his average income consumers business, sustained inflation has led to “a stronger demand for higher income customers,” Creedon said in a call of analysts.
The success of Dollar Tree with higher income buyers follow similar profits from Walmartwhich has made incursions with cohort after the prolonged period of high prices.
Trump’s tariffs on certain assets of China, Mexico and Canada, and the potential of broad duties in commercial partners around the world, have only added concerns about households stretched in homes. While Dollar Tree will use tactics such as negotiating with suppliers and in manufacturing motion to mitigate the effect of tasks, the prices of some articles could also increase, said Creedon.
Dollar Tree has implemented higher prices than its standard products of $ 1.25 in approximately 2,900 calls of multiple prices. Certain products can cost between $ 1.50 and $ 7 in those locations.
The retailer intervened in higher income customers and the potential effect of rates as it is announced its fiscal earnings of the fourth quarter. Dollar Tree also said he will sell his family dollar champion for about $ 1 billion to a consortium of private capital investors.
Dollar Tree said that his net sales for continuous operations, his homonymous brand, totaled $ 5 billion for the quarter, while sales of the same stores increased by 2%. A share adjusted profits reached $ 2.11 for the period.
It is not clear how figures are compared to Wall Street estimates.
For fiscal year 2025, Dollar Tree expects net sales from $ 18.5 billion to $ 19.1 billion of continuous operations, with a sales growth in the same store from 3% to 5%. Anticipates that you will publish adjusted profits from $ 5 to $ 5.50 per share for the year.
Creedon said that the expected blow of the first round of 10% of the rates that Trump raised in China in February would have been $ 15 million to $ 20 million per month, but the company has mitigated about 90% of that effect.
The additional 10% tasks in China imposed this month, together with 25% levies in Mexico and Canada that have only partially entered the dollar tree in another $ 20 million per month, Creedon said. The company is working to compensate for those tasks, but did not include them in its financial guide due to the confusion about which tariffs will come into force and when.
