Dollar tree On Wednesday it said that a market share with higher consumers with higher incomes and could increase the prices for some products to compensate for President Donald Trump's tariffs.
The CEO of the discount dealer, Michael Creedon, said that the company sees “added value behavior in all income groups”. While dollar Tree was always dependent on buyers with lower incomes and about 50% of his business of consumers with medium-sized incomes, a persistent inflation has led to a “stronger demand for customers with higher incomes,” said Creedon on an analyst call.
The success of dollar Tree with buyers with higher incomes follows similar profits WalmartWhich led the cohort into the area after the long period of high prices.
Trump's tariffs for certain goods from China, Mexico and Canada – and the potential for comprehensive tasks for trading partners around the world – have only contributed to the concerns about extended household budgets. While dollar Tree tactics such as negotiations with suppliers and the shift in production to alleviate the effects of the tasks, he could also increase the prices of some articles, said Creedon.
The dollar Tree has introduced the prices of $ 1.25 in about 2,900 so-called multi-price branches. Certain products can cost between 1.50 and 7 US dollars at these locations.
The retailer has worked through customers with higher incomes and the potential effects of tariffs, as he announced the result of the fourth quarter. Dollar Tree also said that it will sell its fighting family collar chain for around $ 1 billion to a consortium of private equity investors.
Dollar Tree said that its net turnover for the ongoing operating stone was $ 5 billion for the quarter, while sales with sales with the same business rose by 2%. The adapted result per share was $ 2.11 for the period.
It is unclear how the numbers are compared with the estimates of Wall Street.
For the 2025 financial year, Dollar Tree expects net sales of $ 18.5 billion to $ 19.1 billion from continued operation, with sales growth of 3% to 5% in the same business. It is assumed that the proinious profit of $ 5.50 per share will be classified for the year.
Creedon said that the expected hit from the first round of 10% tariffs that Trump had levied in China in February would have participated in 15 to 20 million US dollars a month, but the company has reduced about 90% of this effect.
This month, additional 10% potential in China as well as 25% taxes in Mexico and Canada, which have only partially entered into force, were hit by a further $ 20 million US dollars a month, said Creedon. However, the company is working on compensating for these tasks, but has not included it in its financial guidelines because the confusion about which tariffs are effective and when.
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