On Wednesday, investment firm Jefferies adjusted its outlook on Dollar Tree shares (NASDAQ:DLTR), lowering the price target to $128 from the previous $130, while maintaining a Hold rating on the stock. The revision follows Dollar Tree's recent report where the company's fourth-quarter financial results fell short of market expectations.
The retailer, known for selling items at fixed price points, is set to shutter approximately 1,000 underperforming Family Dollar (FDO) stores over the next few years. This decision comes as the company navigates several challenges in the first quarter, including increased product costs, an unfavorable sales mix, and issues related to inventory shrinkage.
Despite these hurdles, Dollar Tree's guidance for the full year aligns with the estimates set by Wall Street analysts. The company's Dollar Tree (DT) banner sustained its strength throughout the fourth quarter. Management's current focus is on turning around the Family Dollar banner, a process which is still in its initial stages.
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