Dollar Tree Inc (DLTR)

Dollar Tree (DLTR) stock fell by 14.21% due to the company's announcement of massive losses as it closes hundreds of Family Dollar locations.

• Reasons Behind the Losses: In the fourth quarter of 2023, Dollar Tree reported net sales of $8.6 billion, a 12% increase year over year. However, the company suffered a significant loss due to the recognition of too many underperforming locations within its portfolio. Dollar Tree announced the closure of 600 Family Dollar locations in the first half of 2024, followed by another 370 closures as their leases expire.
• Financial Impact and Strategy: The closures, along with other charges like goodwill and intangible asset impairment charges, resulted in a $2 billion hit to the company. Additionally, the review of its store portfolio cost nearly $600 million, contributing to its substantial net loss for the quarter.

Shares of Dollar Tree, Inc. (DLTR) declined 12.90% to $123.88 after the company reported second-quarter financial results and issued third-quarter EPS guidance below estimates.

https://www.benzinga.com/news/23/08/34029464/why-splunk-are-trading-higher-by-13-here-are-other-stocks-moving-in-thursdays-mid-day-session

DLTR's stock fell 12.03% after the discount retailer missed fiscal first-quarter profit expectations and cut its full-year outlook, as elevated shrink and a shift in buying patterns to consumables weighed on results. Dollar Tree's gross margins declined 340 basis points to 30.5% in the quarter ended April 29, compared to a year ago. This contrasts comments from some retailers which have been optimistic towards their gross margin recovery.

https://finance.yahoo.com/news/dollar-tree-trims-profit-forecast-113437374.html