Report
John Brick, CFA
EUR 101.80 For Business Accounts Only

Dollar Tree's value proposition positions it to defend against competition, despite muting profits.

We believe the double-digit decline in narrow-moat Dollar Tree’s shares after the fourth-quarter earnings release is warranted, as the market has not been adequately accounting for the competitive pressures and investment spending that was the theme of these results. Persistent cost inflation from wages and freight costs are set to pressure profit growth in 2018, with the firm forecasting earnings per share of $5.25-$5.60, lower than consensus at $5.96 but in line with our $5.54 estimate. We pla...
Underlying
Dollar Tree Inc.

Dollar Tree is an operator of discount variety stores. The company's stores operate under the names of Dollar Tree, Family Dollar and Dollar Tree Canada. The company's segments are: Dollar Tree, which is the operator of discount variety stores providing merchandise at the fixed price point of $1.00; and Family Dollar, which operates general merchandise discount retail stores. The merchandise mix in the company's Dollar Tree stores consists of consumable merchandise, variety merchandise, and seasonal goods. The merchandise mix in the company's Family Dollar stores consists of consumable merchandise, home products, apparel and accessories merchandise, and seasonal and electronics merchandise.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
John Brick, CFA

Other Reports on these Companies
Other Reports from Morningstar

ResearchPool Subscriptions

Get the most out of your insights

Get in touch