Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Kevin Hassett ‘very, very confident’ courts will back...
Rand Paul says he would support ‘big, beautiful...
Trump’s 20th week in office to include White...
Polish conservative Karol Nawrocki wins presidential election to...
Will the Trump Cabinet undo Musk’s DOGE legacy...
Maxine Waters campaign to pay $68K for violating...
Fetterman, McCormick react to ‘astonishing’ Boulder attack on...
As Musk exits DOGE, a look back at...
‘Red tape’: Trump admin unleashes DOGE-aligned process to...
Lithium Universe LtdSpodumene Offtake Update
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Business

Dollar Tree says it’s winning over higher-income shoppers and may offset tariffs with price hikes

by admin March 28, 2025
March 28, 2025
Dollar Tree says it’s winning over higher-income shoppers and may offset tariffs with price hikes

Dollar Tree said Wednesday that it’s gaining market share with higher-income consumers and could raise prices on some products to offset President Donald Trump’s tariffs.

The discount retailer’s CEO, Michael Creedon, said the company is seeing “value-seeking behavior across all income groups.” While Dollar Tree has always relied on lower-income shoppers and gets about 50% of its business from middle-income consumers, sustained inflation has led to “stronger demand from higher-income customers,” Creedon said.

Dollar Tree’s success with higher-income shoppers follows similar gains from Walmart, which has made inroads with the cohort following the prolonged period of high prices.

Trump’s tariffs on certain goods from China, Mexico and Canada — and the potential for broad duties on trading partners around the world — have only added to concerns about stretched household budgets. While Dollar Tree will use tactics like negotiating with suppliers and moving manufacturing to mitigate the effect of the duties, it could also hike the prices of some items, Creedon said.

Dollar Tree has rolled out prices higher than its standard $1.25 products at about 2,900 so-called multi-price stores. Certain products can cost anywhere from $1.50 to $7 at those locations.

The retailer weighed in on higher-income customers and the potential effect of tariffs as it announced its fourth-quarter earnings. Dollar Tree also said it will sell its struggling Family Dollar chain for about $1 billion to a consortium of private-equity investors.

Dollar Tree said its net sales for continuing operations — its namesake brand — totaled $5 billion for the quarter, while same-stores sales climbed 2%. Adjusted earnings per share came in at $2.11 for the period.

It is unclear how the figures compare to Wall Street estimates.

For fiscal 2025, Dollar Tree expects net sales of $18.5 billion to $19.1 billion from continuing operations, with same-store sales growth of 3% to 5%. It anticipates it will post adjusted earnings of $5 to $5.50 per share for the year.

Creedon said the expected hit from the first round of 10% tariffs Trump levied on China in February would have been $15 million to $20 million per month, but the company has mitigated about 90% of that effect.

Additional 10% duties on China imposed this month, along with 25% levies on Mexico and Canada that have only partly taken effect, would hit Dollar Tree by another $20 million per month, Creedon said. The company is working to offset those duties, but did not include them in its financial guidance due to the confusion over which tariffs will take effect and when.

This post appeared first on NBC NEWS

previous post
Oil executives bluntly criticize Trump tariffs and ‘drill, baby, drill’ mantra
next post
Trump’s Auto Tariffs Ignite Global Trade Tensions and Market Uncertainty

You may also like

Amazon and Nvidia say AI data center demand...

April 25, 2025

‘RFK’ing the french fries’: Steak ‘n Shake becomes...

March 18, 2025

’60 Minutes’ producer leaves show, citing a loss...

April 23, 2025

June home sales slump as median sales price...

July 24, 2024

Tesla denies report it’s looking to replace Elon...

May 3, 2025

Nintendo Switch 2 retail preorder to begin April...

April 21, 2025

Here’s what the NBA’s new media deal means...

July 26, 2024

Intel shares plunge 28%, dragging down global chip...

August 3, 2024

Berkshire Hathaway employee wins $1 million in Warren...

March 27, 2025

ESPN networks, ABC and Disney channels go dark...

September 3, 2024

Recent Posts

  • Kevin Hassett ‘very, very confident’ courts will back Trump’s tariffs amid legal setback
  • Rand Paul says he would support ‘big, beautiful bill’ if debt ceiling hike removed
  • Trump’s 20th week in office to include White House meeting with European leader, expected call with Xi
  • Polish conservative Karol Nawrocki wins presidential election to succeed Duda
  • Will the Trump Cabinet undo Musk’s DOGE legacy now that he’s gone?

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (752)
    • Investing (2,227)
    • Politics (2,757)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.