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Yahoo
6 days ago
- Business
- Yahoo
Dollar Tree expects to take profit hit from tariffs, shares drop on outlook
Dollar Tree cautioned investors that tariffs and price volatility could result in a profit decline of up to 50% in the current quarter. The discount retail chain said on Wednesday, June 4, that adjusted profit during the second quarter, which ends Aug. 2, could be down as much as 45% to 50% compared to a year ago. "Given the volatility of today's operating environment, it is challenging to predict with precision the near-term performance of the business in Q2, especially regarding tariff and other cost mitigation efforts," said Dollar Tree CEO Mike Creedon in a call with investment analysts Wednesday. For the full year, Dollar Tree assumes it "will be able to mitigate most, if not all of the potential earnings impact from higher tariffs, assuming the current levels remain in place," he said. National Donut Day 2025 deals: Get free food at Dunkin', Krispy Kreme, more Dollar Tree was able to offset 90% of the first round of 10% tariffs, which President Donald Trump announced in April, during the first quarter, Creedon said. However, some purchases made when tariffs on goods from China were 145% will be absorbed during the current quarter, chief financial officer Stewart Glendinning said during the call. Those tariffs will result in increased costs of about $70 million during the second quarter, he said. Shares of the discount retail chain fell about 8% in early trading on Wednesday, June 4. To deal with tariffs, company said it is negotiating with suppliers, opting for new products or dropping products, buying them from other countries or raising prices – since its multi-price format, initiated in March 2024, allows for prices up to $7. "The tariff landscape is highly fluid and changing week to week, so we are focused on agility and on improving that agility," Creedon said. Dollar Tree also saw signs of consumer concerns about prices and volatility as the company reported an increase of 2.6 million new customers, a majority with household incomes of $100K or more, Creedon said. "We believe we've got a unique opportunity here, as these new customers find us," he said. "We want to create a great first impression for that customer. We want to create a sticky relationship with that customer for years and years to come." Dollar Tree said net sales increased 11.3% to $4.6 billion during the first quarter, which ended May 3. That surpassed the $4.5 billion expected by analysts polled by S&P Global Market Intelligence. Same-store sales increased 5.4% during the period, with store traffic up 2.5% increase. Shoppers spent 2.8% more, on average, per transaction, the company said. Dollar Tree opened a total of 148 new Dollar Tree stores during the quarter – including its 9,000th store, located in Plano, Texas – and finished the quarter with 9,016 open stores. The company plans to open about 400 new Dollar Tree locations during the year, not including 57 Dollar Tree-Family Dollar combo stores that will be converted to Dollar Tree stores. Contributing: Reuters. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day This article originally appeared on USA TODAY: Dollar Tree: Tariffs will impact profit in current quarter Connectez-vous pour accéder à votre portefeuille
USA Today
6 days ago
- Business
- USA Today
Dollar Tree expects to take profit hit from tariffs, shares drop on outlook
Dollar Tree expects to take profit hit from tariffs, shares drop on outlook Show Caption Hide Caption Gap shares tumble as retailer warns of tariff toll on profits Gap shares fell 20% in early trading on Friday after the Old Navy owner warned that U.S. tariffs would squeeze this year's profit, even as the apparel maker aims to soften the blow by diversifying its supply chain and investing in U.S. cotton. Dollar Tree cautioned investors that tariffs and price volatility could result in a profit decline of up to 50% in the current quarter. The discount retail chain said on Wednesday, June 4, that adjusted profit during the second quarter, which ends Aug. 2, could be down as much as 45% to 50% compared to a year ago. "Given the volatility of today's operating environment, it is challenging to predict with precision the near-term performance of the business in Q2, especially regarding tariff and other cost mitigation efforts," said Dollar Tree CEO Mike Creedon in a call with investment analysts Wednesday. For the full year, Dollar Tree assumes it "will be able to mitigate most, if not all of the potential earnings impact from higher tariffs, assuming the current levels remain in place," he said. National Donut Day 2025 deals: Get free food at Dunkin', Krispy Kreme, more Dollar Tree was able to offset 90% of the first round of 10% tariffs, which President Donald Trump announced in April, during the first quarter, Creedon said. However, some purchases made when tariffs on goods from China were 145% will be absorbed during the current quarter, chief financial officer Stewart Glendinning said during the call. Those tariffs will result in increased costs of about $70 million during the second quarter, he said. Shares of the discount retail chain fell about 8% in early trading on Wednesday, June 4. Dollar Tree: Tariff situation 'highly fluid' To deal with tariffs, company said it is negotiating with suppliers, opting for new products or dropping products, buying them from other countries or raising prices – since its multi-price format, initiated in March 2024, allows for prices up to $7. "The tariff landscape is highly fluid and changing week to week, so we are focused on agility and on improving that agility," Creedon said. Dollar Tree also saw signs of consumer concerns about prices and volatility as the company reported an increase of 2.6 million new customers, a majority with household incomes of $100K or more, Creedon said. "We believe we've got a unique opportunity here, as these new customers find us," he said. "We want to create a great first impression for that customer. We want to create a sticky relationship with that customer for years and years to come." Dollar Tree said net sales increased 11.3% to $4.6 billion during the first quarter, which ended May 3. That surpassed the $4.5 billion expected by analysts polled by S&P Global Market Intelligence. Same-store sales increased 5.4% during the period, with store traffic up 2.5% increase. Shoppers spent 2.8% more, on average, per transaction, the company said. Dollar Tree opened a total of 148 new Dollar Tree stores during the quarter – including its 9,000th store, located in Plano, Texas – and finished the quarter with 9,016 open stores. The company plans to open about 400 new Dollar Tree locations during the year, not including 57 Dollar Tree-Family Dollar combo stores that will be converted to Dollar Tree stores. Contributing: Reuters. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day
Yahoo
14-05-2025
- Business
- Yahoo
SREIT Appoints Nora Creedon Chief Executive Officer
MIAMI BEACH, Fla., May 14, 2025 /PRNewswire/ -- Starwood Real Estate Income Trust, Inc. ("SREIT"), a non-listed REIT managed by Starwood Capital Group ("Starwood Capital"), today announced that Nora Creedon, a seasoned real estate investment executive with nearly two decades of REIT leadership experience, has been appointed SREIT's President and Chief Executive Officer effective July 28, 2025. Ms. Creedon will succeed Sean Harris who is stepping down to pursue other opportunities. Ms. Creedon joins SREIT after 18 years at Goldman Sachs, where she most recently served as CEO and President of GS REIT, a non-traded equity REIT, and as a Managing Director in the Private Real Estate Group within the firm's Asset & Wealth Management division. Ms. Creedon was also a member of the firm's Global Real Estate Investment Committee and oversaw the real estate investments of the Exchange Fund series. Previously, Ms. Creedon was the Global Head of REITs and infrastructure strategies within Fundamental Equity investing at Goldman Sachs and spent several years at Fidelity Investments and Fortress Investment Group. "On behalf of the team, I am thrilled to welcome Nora to SREIT," said Barry Sternlicht, CEO of Starwood Capital and Chairman of SREIT. "Nora brings exceptional leadership and a proven track record in real estate investing, positioning her to build on SREIT's strong foundation and drive continued growth. Since its launch more than six years ago, SREIT has been focused on a simple strategy: investing in high-quality, well-located real estate in a vehicle designed to provide investors with capital appreciation potential driven by attractive, stable, tax-efficient income and low volatility and correlation to public markets. "With Nora's leadership and the dedication of our talented team, I'm confident that SREIT will continue to execute on its objectives and deliver strong results for our stockholders." "It is a tremendous opportunity to work alongside Barry and the team at SREIT, particularly at such a dynamic time in the market," said Ms. Creedon. "SREIT is a high-quality, well-positioned portfolio, with 87% strategically allocated across Rental Housing, Industrial assets, and Real Estate Loans. I'm excited to continue the work ahead and serve as a steward of our stockholders' hard-earned capital." "We are proud to have an executive of Nora's caliber leading our commitment to the long-term success of SREIT," said Jonathan Pollack, President of Starwood Capital. "The private wealth business is incredibly important to Starwood Capital. As demand for alternative investments grows, we're focused on delivering strategic and differentiated solutions. In addition to SREIT, Starwood Capital manages products across the real estate spectrum, including funds focused on senior secured real estate debt and vehicles set up for 1031 exchanges that are designed to support tax and estate planning. We aim to serve the evolving needs of the private wealth community with the same rigor and excellence we bring to our institutional business." Sternlicht added: "I also want to extend my sincere thanks to Sean for his outstanding contributions to Starwood Capital. We're grateful for his years of leadership, and he will work closely with Nora over the coming months to ensure a smooth and thoughtful transition." About Starwood Capital Group Starwood Capital Group is a private investment firm with a core focus on real assets globally. Since its inception in 1991, Starwood Capital Group has raised over $80 billion of capital, and currently has ~$115 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $102 billion of capital since inception and manages a portfolio of over $25 billion across debt and equity investments. Additionally, Starwood Capital manages approximately $4 billion in several private debt funds investing across the globe. Starwood's large owned portfolio and its active affiliates provide significant real-time information that can be acted on, across asset classes and geographies. These affiliates include: Starwood's in-house property management company with over 2,000 people, Starwood Digital Ventures – Starwood's in-house data center platform with over 60 people fully dedicated to Starwood's data center investment strategy, Starwood Hotels – Starwood's affiliated hotel brand management team with almost 4,000 professionals, Essex Title – which acts as a title agent for one or more underwriters in issuing title policies and/or providing support services, and Starwood Oil & Gas – which leverages Starwood's industry knowledge and extensive transactional experience to capitalize on conventional and unconventional assets in North America. Over the past 33 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at and Media Contacts H/Advisors Abernathy Tom Johnson: (212) 371-5999 Dan Scorpio, (646) 899-8118 This press release is not an offer to sell nor a solicitation of an offer to buy any securities. View original content to download multimedia: SOURCE Starwood Capital Group Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
23-04-2025
- Business
- USA Today
Dollar Tree earnings call reveals sale of Family Dollar, expansion of stores
Dollar Tree earnings call reveals sale of Family Dollar, expansion of stores Dollar Tree is selling off its Family Dollar stores for about $1 billion in a move the company says strengthens both companies – and lets Dollar Tree focus on growth. Private equity firms Brigade Capital Management and Macellum Capital Management will purchase Family Dollar, the companies announced Wednesday; Dollar Tree estimated about $804 million in net proceeds from the sale, which it expects to close by June 2025. Dollar Tree, which acquired Family Dollar in 2015 for about $9 billion, began considering a sale or spinoff of Family Dollar in June 2024 as a way to restructure the company amid a challenging retail climate with inflation and competition from big-box retailers such as Walmart and online retailers including Amazon, Shein and Temu. Dollar Tree closed about 600 Family Dollar stores in 2024 and had plans to close another 370 – along with 30 Dollar Tree stores – when the leases came up on on those locations. CEO Michael Creedon, who moved from chief operating officer to interim CEO and then CEO during Dollar Tree's restructuring in recent months, said the separation from Family Dollar puts Dollar Tree in position to "achieve its full potential," in a call with investment analysts Wednesday. 'We will continue to grow and optimize our Dollar Tree business to maximize value for Dollar Tree associates, customers, and shareholders with an enhanced focus on compelling initiatives, including our expanded assortment, significant planned new store openings across the United States, and transactions that advance our growth strategy," Creedon said in a press release announcing the Family Dollar sale. Store closings: 27 Kohl's stores are set to close Saturday. See list of the closures in 15 states Dollar Tree adding, upgrading stores Dollar Tree, which has 2,900 Dollar Tree stores after opening 525 during the past year, expects to open about 300 new stores in 2025, Creedon said. The discount retailer is also upgrading stores to handle items priced as high as $7. Among stores being upgraded are some among the 170 leases of 99 Cents Only Stores in Arizona, California, Nevada, and Texas acquired in May 2024. About 1,000 combination Family Dollar-Dollar Tree stores will be sold in the deal. Dollar Tree reported net sales of $5 billion – excluding sales from Family Dollar stores – a 2% increase in same-store sales during the three-month period ending Feb. 1, 2025. Store traffic in Dollar Tree stores rose 0.7% and shoppers spent 1.3% more per total purchase. Total fourth quarter sales including from Family Dollar were $8.26 billion, which surpassed the $8.23 billion estimated by analysts polled by S&P Global Market Intelligence. Dollar Tree CEO on higher-income shoppers: 'Everybody's hurting' Traditionally, middle-income shoppers account for about half of Dollar Tree customers, Creedon said. However, increased traffic and sales is being driven in part by "stronger demand from higher-income customers who increasingly see Dollar Tree as a cost-effective source for an expanding range of products," he said. Lower-income customers "need us particularly to make their wallet go farther, in between paychecks," Creedon said. But during "this inflationary environment, all shoppers across all income cohorts, including the higher income, is finding Dollar Tree as part of their solution," he said. "It doesn't matter how much money you make everybody's hurting right now." Tariffs could lead to some higher prices at Dollar Tree Dollar Tree had "mitigated" the effects of the first round of tariffs levied on products from China by about 90%, through negotiations, changing product specifications and buying from suppliers in different countries. But higher prices could be an option depending on how future tariffs on goods from Mexico and Canada play out, Creedon said. For instance, he said, "we're the best in the nation for prayer candles. They're made in Mexico and so we want to make sure we can still offer them. So we will look at targeted pricing on things like that." Dollar Tree's break with Family Dollar marks the end of a costly merger it hoped would bolster it against competitors such as Dollar General, which also bid on Family Dollar at the time. Family Dollar stores had also been hit with some issues over the past two years including a 2023 recall of products including toothpaste, pain relievers and other over-the-counter medicines that had been stored improperly, but were shipped to stores. In 2024, Family Dollar agreed to pay the Justice Department $41.6 million for storing food, cosmetics, drugs and medical devices in a rat-infested warehouse in Arkansas for several years, court records show. "It is truly 'addition by subtraction' as Family Dollar had been a consistent weight on topline performance, margin rate, and management time," Evercore analyst Michael Montani told Reuters. Dollar Tree shares, which had been down 11% so far this year, were up more than 9% in early trading Wednesday. Contributing: Emily DeLetter, Jonathan Limehouse and Anthony Robledo of USA TODAY, Reuters. Follow Mike Snider on Threads, Bluesky and X: mikegsnider & @ & @mikesnider. What's everyone talking about? 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Yahoo
28-03-2025
- Business
- Yahoo
Dollar Tree's CEO Says 'Everybody Is Hurting' In Today's Economy
Dollar Tree CEO Michael Creedon said people of all economic backgrounds are shopping at Dollar Tree because they're hurting economically. Store traffic and average transaction amounts grew year-over-year in its latest quarter, according to earnings results released Wednesday. Dollar Tree is one of several retailers saying consumers are shifting their habits in an attempt to save economic worries may be good for business at Dollar Tree. People of all economic backgrounds are turning to Dollar Tree (DLTR) to stretch their budgets, CEO Michael Creedon said during a conference call on Thursday, bolstering sales and market share. The retailer's traffic increased 0.7% and the average transaction amount grew 1.3% year-over-year for the quarter ended Feb. 1, according to Dollar Tree. It "doesn't matter how much money you make, everybody is hurting right now,' Creedon said, according to a transcript made available from AlphaSense. 'The good news is: Dollar Tree and Family Dollar are a big part of that answer to what hurts.' Dollar Tree is seeing more business come from higher-income households, while lower-income shoppers need the chain to make it between paychecks, Creedon said. He said about half of Dollar Tree's shoppers are middle income, and they have traditionally shopped its stores' seasonal and holiday merchandise. 'That's our bread and butter,' Creedon said of middle-income households, according to the transcript. 'They need us to live and celebrate their lives.' Other retailers are catering to consumers' desire to save, including Dollar General (DG). Target (TGT) said late last year that it cut thousands of prices as customers grew 'increasingly resourceful.' Americans are frequenting fast-casual joints instead of sit-down restaurants and buying smaller packages at the supermarket, executives said. Walmart (WMT) has seen growth in its higher-income clientele. Dollar Tree said today that it estimates bringing in more than $800 million for selling Family Dollar to private-equity firms. Dollar General shares recently up nearly 3%. Read the original article on Investopedia Sign in to access your portfolio
