Latest news with #MikeCreedon
Yahoo
07-07-2025
- Business
- Yahoo
Chesapeake-based Dollar Tree completes sale of Family Dollar stores
Dollar Tree announced on Monday the completion of the sale of its Family Dollar business. The Chesapeake-based company sold the business segment to Brigade and Macellum, two capital management companies, for a total cost of $1,007.5 million in cash. The net proceeds are estimated to total approximately $800 million. The company anticipates the economic impact of tax benefits from losses on the sale to be approximately $375 million, according to a news release. Dollar Tree CEO Mike Creedon said in the release that the transaction marks a defining moment. 'With a singular focus on our core business, we are doubling down on what we do best — delivering value, convenience, and discovery to our customers every day,' he said. 'Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.' Founded almost 40 years ago, Dollar Tree — now a standalone company with 9,000 stores throughout the U.S. — plans to focus on growth. Sandra J. Pennecke, 757-652-5836,
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Dollar Tree Completes Sale of Family Dollar Business to Brigade Capital Management and Macellum Capital Management
Dollar Tree, Inc. (NASDAQ: DLTR) (the 'Company') today announced the completion of the previously announced sale of its Family Dollar business segment to Brigade Capital Management, LP ('Brigade') and Macellum Capital Management, LLC ('Macellum') for an aggregate base purchase price of $1,007.5 million in cash, subject to certain adjustments. Net proceeds from the sale are estimated to total approximately $800 million comprised of $665 million paid at closing and approximately $135 million as a result of the monetization of cash prior to closing through a reduction of net working capital. The Company now expects the economic impact of tax benefits from losses on the sale to be approximately $375 million. These amounts are subject to final adjustment approximately 90 days after the closing date. 'The completion of this transaction marks a defining moment for Dollar Tree,' said Mike Creedon, Chief Executive Officer of Dollar Tree, Inc. 'With a singular focus on our core business, we are doubling down on what we do best – delivering value, convenience, and discovery to our customers every day. Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.' As a standalone company, Dollar Tree will continue to grow through compelling initiatives like its expanded assortment, new store growth, and attracting new customers. Since the company's founding nearly 40 years ago, Dollar Tree has grown to a 9,000-strong store footprint, reflecting its strength as one of the most powerful value retailers in North America. As previously disclosed, with the closing of this transaction, Dollar Tree will begin a Transition Services Agreement (TSA). The Company will be reimbursed for the cost of providing these services. The company expects an offsetting reduction to SG&A, resulting from a combination of this reimbursement of TSA expenses and a reduction in headcount expenses because of employees who will now be employed by Family Dollar. The transaction was announced on March 26, 2025, and concludes Dollar Tree's review of strategic alternatives for the Family Dollar business segment, which began in June 2024. J.P. Morgan Securities LLC served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to Dollar Tree. A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: 'believe', 'anticipate', 'expect', 'intend', 'plan', 'view', 'target' or 'estimate', 'may', 'will', 'should', 'predict', 'possible', 'potential', 'continue', 'strategy', and similar expressions. For example, our forward-looking statements include statements relating to our plans and expectations regarding our business, including the impact of various initiatives, growth prospects, and other plans, objectives, expectations (financial and otherwise) and intentions. Our forward-looking statements also include statements and expectations regarding our sale of Family Dollar, the proceeds thereof (which are subject to final adjustment), and the related TSA. The transactions described may disrupt our business operations, be more difficult or costly than expected or fail to achieve the anticipated benefits. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 26, 2025, our Quarterly Report on Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so. About Dollar Tree, Inc. Dollar Tree Inc. (NASDAQ: DLTR), headquartered in Chesapeake, VA, is one of North America's largest and most loved value retailers, known for delivering great value, convenience, and a 'thrill-of-the-hunt' discovery shopping experience. With a team of approximately 150,000 associates, Dollar Tree operates more than 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. Additional information about Dollar Tree can be found at
Business Wire
07-07-2025
- Business
- Business Wire
Dollar Tree Completes Sale of Family Dollar Business to Brigade Capital Management and Macellum Capital Management
CHESAPEAKE, Va.--(BUSINESS WIRE)--Dollar Tree, Inc. (NASDAQ: DLTR) (the 'Company') today announced the completion of the previously announced sale of its Family Dollar business segment to Brigade Capital Management, LP ('Brigade') and Macellum Capital Management, LLC ('Macellum') for an aggregate base purchase price of $1,007.5 million in cash, subject to certain adjustments. Net proceeds from the sale are estimated to total approximately $800 million comprised of $665 million paid at closing and approximately $135 million as a result of the monetization of cash prior to closing through a reduction of net working capital. The Company now expects the economic impact of tax benefits from losses on the sale to be approximately $375 million. These amounts are subject to final adjustment approximately 90 days after the closing date. 'The completion of this transaction marks a defining moment for Dollar Tree,' said Mike Creedon, Chief Executive Officer of Dollar Tree, Inc. 'With a singular focus on our core business, we are doubling down on what we do best – delivering value, convenience, and discovery to our customers every day. Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.' As a standalone company, Dollar Tree will continue to grow through compelling initiatives like its expanded assortment, new store growth, and attracting new customers. Since the company's founding nearly 40 years ago, Dollar Tree has grown to a 9,000-strong store footprint, reflecting its strength as one of the most powerful value retailers in North America. As previously disclosed, with the closing of this transaction, Dollar Tree will begin a Transition Services Agreement (TSA). The Company will be reimbursed for the cost of providing these services. The company expects an offsetting reduction to SG&A, resulting from a combination of this reimbursement of TSA expenses and a reduction in headcount expenses because of employees who will now be employed by Family Dollar. The transaction was announced on March 26, 2025, and concludes Dollar Tree's review of strategic alternatives for the Family Dollar business segment, which began in June 2024. J.P. Morgan Securities LLC served as financial advisor and Davis Polk & Wardwell LLP served as legal advisor to Dollar Tree. A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: 'believe', 'anticipate', 'expect', 'intend', 'plan', 'view', 'target' or 'estimate', 'may', 'will', 'should', 'predict', 'possible', 'potential', 'continue', 'strategy', and similar expressions. For example, our forward-looking statements include statements relating to our plans and expectations regarding our business, including the impact of various initiatives, growth prospects, and other plans, objectives, expectations (financial and otherwise) and intentions. Our forward-looking statements also include statements and expectations regarding our sale of Family Dollar, the proceeds thereof (which are subject to final adjustment), and the related TSA. The transactions described may disrupt our business operations, be more difficult or costly than expected or fail to achieve the anticipated benefits. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 26, 2025, our Quarterly Report on Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so. About Dollar Tree, Inc. Dollar Tree Inc. (NASDAQ: DLTR), headquartered in Chesapeake, VA, is one of North America's largest and most loved value retailers, known for delivering great value, convenience, and a 'thrill-of-the-hunt' discovery shopping experience. With a team of approximately 150,000 associates, Dollar Tree operates more than 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The company is committed to being a responsible steward of its business – supporting its people, serving its communities, and creating lasting value. Additional information about Dollar Tree can be found at DLTR-G
CBS News
04-06-2025
- Business
- CBS News
Dollar Tree says U.S. tariffs could cut its second-quarter profits in half
Dollar Tree, a chain of discount stores, warned Wednesday that President Trump's import tariffs could lower its second-quarter earnings by as much as 50% compared to the year-ago period. The Chesapeake, Virginia-based retailer sources most of its inventory, which ranges from disposable tableware, party supplies and toys to puzzles and clothing, from China, making it vulnerable to higher U.S. tariffs on the Asian economic giant. Mr. Trump earlier this year imposed tariffs of 145% on Chinese imports, claiming Beijing hasn't taken sufficient steps to stem the flow of fentanyl into the U.S., before lowering the rate last month to 30% as the sides discuss trade issues. Even at the reduced rate, some businesses say the levies would make importing Chinese-made goods prohibitively expensive. Dollar Tree CEO Mike Creedon said in an earnings call with Wall Street analysts on Wednesday that he expects the tariffs to hurt the company's earnings in the near-term. "We are actively engaged on multiple fronts to mitigate the impact of inflationary cost pressures including tariffs," he added, while acknowledging that "the tariff landscape is highly fluid and changing week to week." The company is leveraging its relationships with suppliers to keep its costs as low as possible, Creedon noted. "Given the volatility of today's operating environment, it is challenging to predict with precision the near-term performance of the business in Q2 — especially regarding tariff and other cost-mitigation efforts," he said. The company's second-quarter earnings per share could drop by as much as 50% compared to the same period a year earlier, according to Dollar Tree. The company forecast its earnings to rebound in the third and fourth quarters as it expects being able to "mitigate most of the incremental margin pressure from higher tariffs and other input costs" for the whole year, Dollar Tree said in a statement. For the first quarter, the retail chain posted revenue of $4.6 billion and said it expects 2025 earnings in the range of $5.15 to $5.65 per share. It expects full-year revenue of between $18.5 billion and $19.1 billion. Dollar Tree said on Wednesday's call that higher-income customers have driven growth across its more than 15,500 store locations, a sign its prices are appealing to a broad range of consumers look for deals. The business has also sold its Family Dollar chain store brand in a deal it expects will close this summer. The $1 billion sale of Family Dollar to two private equity firms will allow Dollar Tree to "sharpen its operational focus" and generate cash flow, Creedon said.
Yahoo
04-06-2025
- Business
- Yahoo
Dollar Tree (NASDAQ:DLTR) Surprises With Q1 Sales, Provides Optimistic Revenue Guidance for Next Quarter
Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) reported revenue ahead of Wall Street's expectations in Q1 CY2025, but sales fell by 39.2% year on year to $4.64 billion. The company expects next quarter's revenue to be around $7.67 billion, coming in 74.6% above analysts' estimates. Its non-GAAP profit of $1.26 per share was 4.5% above analysts' consensus estimates. Is now the time to buy Dollar Tree? Find out in our full research report. Revenue: $4.64 billion vs analyst estimates of $4.53 billion (39.2% year-on-year decline, 2.4% beat) Adjusted EPS: $1.26 vs analyst estimates of $1.21 (4.5% beat) Adjusted EBITDA: $535.2 million vs analyst estimates of $528.3 million (11.5% margin, 1.3% beat) The company reconfirmed its revenue guidance for the full year of $18.8 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $5.40 at the midpoint, a 2.9% increase Operating Margin: 8.3%, up from 5.5% in the same quarter last year Free Cash Flow Margin: 2.8%, similar to the same quarter last year Locations: 16,607 at quarter end, up from 16,397 in the same quarter last year Same-Store Sales rose 5.4% year on year (1% in the same quarter last year) Market Capitalization: $20.33 billion 'Our strong first quarter performance underscores the progress we've made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,' said Mike Creedon, Chief Executive Officer. A treasure hunt because there's no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $24.59 billion in revenue over the past 12 months, Dollar Tree is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there is only so much real estate to build new stores, placing a ceiling on its growth. To accelerate sales, Dollar Tree likely needs to optimize its pricing or lean into international expansion. As you can see below, Dollar Tree grew its sales at a sluggish 1.1% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as its store footprint remained unchanged. This quarter, Dollar Tree's revenue fell by 39.2% year on year to $4.64 billion but beat Wall Street's estimates by 2.4%. Company management is currently guiding for a 4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to decline by 21.7% over the next 12 months, a deceleration versus the last six years. This projection is underwhelming and indicates its products will see some demand headwinds. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. A retailer's store count influences how much it can sell and how quickly revenue can grow. Dollar Tree listed 16,607 locations in the latest quarter and has kept its store count flat over the last two years while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it's focusing on operational efficiency to increase profitability. The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales is an industry measure of whether revenue is growing at those existing stores and is driven by customer visits (often called traffic) and the average spending per customer (ticket). Dollar Tree's demand has been healthy for a retailer over the last two years. On average, the company has grown its same-store sales by a robust 3.1% per year. Given its flat store base over the same period, this performance stems from not only increased foot traffic at existing locations but also higher e-commerce sales as demand shifts from in-store to online. In the latest quarter, Dollar Tree's same-store sales rose 5.4% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign. It was great to see Dollar Tree raise its full-year EPS guidance and beat Wall Street's revenue, EPS, and EBITDA estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was a decent quarter with some key metrics above expectations. Investors were likely hoping for more, and shares traded down 2.8% to $93.94 immediately after reporting. Is Dollar Tree an attractive investment opportunity at the current price? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
