Following yesterday’s notable gains, Dollar Tree shares are up approximately 9.40% in the past year.
Dollar Tree Inc (NASDAQ: DLTR) shares closed yesterday trading at $100.51, up 16.49%. The spike has been attributed to plans by the company to add price points above $1 across all Dollar Tree Plus stores and will begin testing price points above $1 in some legacy Dollar Tree stores.
Dollar Tree Shares
Another announcement that caught the company’s market by surprise was that the company increased its share repurchase authorization by $1.05 billion to a total of $2.5 billion.
Following yesterday’s notable gains, Dollar Tree shares are up approximately 9.40% in the past year but remain down approximately 6.97% in the past nine months. Worth noting, DLTR shares are now up approximately 8.55%, and 17.42% in the past month and five days respectively through Wednesday according to market analytics provided by MarketWatch.
The company shared with its investors that it has plans to add its stores significantly by the next few years. “The company has already announced that it is on track in 2021 to have 500 Dollar Tree Plus stores by fiscal year-end – offering an assortment of value-priced $1, $3, and $5 products. Another 1,500 stores are planned for fiscal 2022, and at least 5,000 Dollar Tree Plus stores are expected by the end of fiscal 2024,” the company noted in a press release.
Notably, the company recently introduced a new format dubbed Combo Store that leverages the strengths of both banners by bringing a multi-price assortment to the company’s shoppers. Currently, the firm has over 100 Combo Stores and has plans to add over 3000 similar stores in the next several years.
Headlines from the Company’s Management
Through the press release, Michael Witynski, President and Chief Executive Officer noted that the company is reorganizing to re-energize itself via empowering its customers.
“For decades, our customers have enjoyed the ‘thrill-of-the-hunt’ for value at one dollar – and we remain committed to that core proposition – but many are telling us that they also want a broader product assortment when they come to shop. We believe testing additional price points above $1 for Dollar Tree products will enable us over time to expand our assortments, introduce new products and meet more of our customers’ everyday needs,” he noted.
“We are a ‘test-and-learn’ organization which is what we are doing with this new initiative. We listen to our customers and believe it will make shopping with us an even better experience,” Witynski added. “Our merchants have proven that they are among the best in the industry in working with suppliers to create extreme value, and we will continue to deliver the ‘thrill-of-the-hunt’ to our customers.”
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