Dollar Tree effect: losses and store closings

American discount store chain dollar Tree ended its 2023 fiscal year with a deficit of US$998.4 million, compared to Net Profit US$1,615 million compared to the previous year, primarily due to the adverse impact of the optimization of the company’s store portfolio, which will see the closure of 1,000 establishments in the coming years.

In this sense, following a review that began in the fourth quarter, taking into account market conditions and the individual performance of the establishments, the chain plans to close 600 Family Dollar stores in the first half of the fiscal year 2024.

Additionally, it will also close approximately 370 Family Dollar stores and 30 other establishments. dollar Tree Each store’s current leases will expire in the next few years.

annual results of dollar Tree Reflect an estimated adverse impact of US$594.4 million related to the review of the store portfolio in the fourth quarter of 2023, plus an additional US$1070 million for the impairment of goodwill and US$950 million of charges for the impairment of trade name intangible assets.

Thus, in the last quarter of its financial year, the discount chain recorded a loss of US$1,709.8 million. Net Profit Of US$452.2 million in Q4 2022.

sale of dollar Tree Their total earnings for the full year were US$30,582 million, up 8% from a year earlier, including US$8,633 million between November 2023 and February 4, 2024, calculated over the same period last year. This is 11.9% more than the income earned.

“We finished the year strong, with fourth quarter results reflecting positive traffic trends, market share gains and improved adjusted margins in both segments,” he said. Rick DreilingChairman and CEO of the chain.