BUZZ-Street View: Dollar Tree's multi-price strategy thrives amid tariff challenges
Dollar Tree raised its annual profit forecast and exceeded quarterly estimates, driven by its multi-price strategy amid tariff challenges. Analysts have mixed views: Piper Sandler notes effective tariff management, Telsey Group sees potential in targeting higher-income households, UBS supports the multi-price strategy, while Bernstein and Jefferies express concerns over long-term sustainability and traffic dynamics.
Dollar Tree (DLTR.O) raised its annual profit forecast and beat quarterly estimates on Wednesday, as the discount retailer bets on steady demand for its affordable essentials to offset the impact of tariff-led uncertainty
Average rating of 27 analysts is “hold”; median PT is $116 - data compiled by LSEG
A FEW PROMISING SIGNS
Piper Sandler (“neutral”; PT: $114) says DLTR is managing through tariffs well with price increases and new multi-price items, helping annual profit to grow
Telsey Group (“outperform”; PT: $135) says co’s focus on higher-income households by offering more relevant merchandise, better service level and sharper-looking stores should help gain a greater share of wallet among this cohort over the next few years
UBS (“buy”; PT: $138) says co’s multi-price strategy can be a winner during key seasonal moments for consumers from all income cohorts
Bernstein (“market-perform”; PT: $109) remains cautious over the longer term, as the tariff environment has made it necessary for DLTR to expand beyond its fixed price point assortment, which could erode its unique moat and value proposition
Jefferies (“underperform”; PT: $75) questions the sustainability of comps due to DLTR’s negative traffic and positive ticket dynamic as it laps price increases
