What's Going On With Dollar Tree (DLTR) Stock?

Dollar Tree Inc DLTR shares are trading higher by 5% to $73.00 over the trailing week. The company last week announced that it is selling its struggling Family Dollar segment to Brigade Capital Management and Macellum Capital Management for $1.007 billion. The deal is expected to close in late 2025.

What To Know: Although Dollar Tree anticipates a 30 to 35-cent earnings hit per share from the sale, executives expressed optimism about refocusing solely on its core Dollar Tree brand. 

CEO Mike Creedon emphasized that separating the businesses would enable better management and operational focus, positioning Dollar Tree for stronger growth and profitability.

Analysts largely supported the move, with Evercore ISI calling it "addition by subtraction" and Truist Securities raising its price target from $76 to $84.

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Despite potential short-term challenges, Telsey Advisory Group and BMO Capital Markets also acknowledged the long-term benefits.

What Else: The company's fourth-quarter earnings exceeded expectations, with revenue of $8.26 billion and an adjusted EPS of $2.29. Same-store sales for Dollar Tree increased by 2%, and the company opened 33 new stores in the quarter. 

Looking ahead, Dollar Tree projects fiscal 2025 revenue between $18.5 billion and $19.1 billion, with same-store sales growth of 3% to 5%.

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Investors can gain exposure to DLTR by investing in the Invesco S&P 500 Equal Weight Consumer Staples ETF RSPS.

How To Buy DLTR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Dollar Tree’s case, it is in the Consumer Staples sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, DLTR has a 52-week high of $137.14 and a 52-week low of $60.49.