Dollar Tree, Inc. (NASDAQ: DLTR) shares faltered Wednesday as the discount-store chain reported financial results for its first quarter ended May 4, 2024.
“We are pleased to deliver first quarter adjusted EPS results that are towards the high end of our outlook range,” said Rick Dreiling, Chairman and Chief Executive Officer. “At Dollar Tree we remain focused on rapidly rolling out our next generation of multi-price stores and at Family Dollar we are taking the steps necessary to position the business for long-term success.”
Chief Financial Officer Jeff Davis added, “Our operating performance was solid despite a soft Easter season for Dollar Tree. The results reflect our operating discipline and careful expense management throughout the quarter.”
The company also: Opened 116 new Dollar Tree and 41 new Family Dollar stores; Converted 926 Dollar Tree stores to in-line multi-price format; Generated $696 million of net cash provided by operating activities; Generated $224 million of free cash flow; Repurchased 2.5 million shares for $313 million.
In a separate press release today, the Company announced that it has initiated a formal review of strategic alternatives for the Company’s Family Dollar business segment, which could include among others, a potential sale, spinoff or other disposition of the business.
The Company has not set a deadline or definitive timetable for the complet ion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome. The Company does not intend to comment further unless and until the Board has approved a specific course of action or the Company has otherwise determined that further disclosure is appropriate or necessary.
DLTR shares flopped $1.58, or 1.3%, to $118.72.