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Dollar Tree (DLTR) Posts Third-Quarter Revenue In-Line with Guidance: Company Announces Pricing Increase for 2022; Shares Gain in Value

Tuesday, November 23, 2021 11:22 AM | Carl Pettit
Dollar Tree (DLTR) Posts Third-Quarter Revenue In-Line with Guidance: Company Announces Pricing Increase for 2022; Shares Gain in Value

Dollar Tree Inc. (DLTR) has just posted its third-quarter results for the quarter ending October 30, 2021. The discount retailer’s revenue of $6.42 billion for the quarter was more-or-less in-line with guidance, while the company’s EPS of $0.96 was slightly higher (by $0.01) than market expectations.

As of 11:12 am EST today, DLTR shares gained 5.51% in value.

Inflation Benefits Discount Stores

It seems the current inflation issues in North America are helping Dollar Tree’s sales. “We experienced a strong finish to the quarter, as shoppers are increasingly focused on value in this inflationary environment,” Michael Witynski, president and chief executive officer, remarked.

Supply Chain Issues and Freight Cost Lead to Pricing Change

Dollar Tree announced that it will move to a $1.25 price point in all of its stores by 2022. Supply chain issues, freight costs and other concerns are the main drivers behind this increase, although the company believes customers will be OK with the change in price.

“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide,” Witynski explained. “Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide. "

 

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