Shoppers may have to try a little harder to find bargains at Dollar Tree — because there will be fewer Dollar Tree stores to find. The discount retailer said early Wednesday that it plans to close almost 1,000 of its locations, after it lost $1.7 billion in its fourth quarter.
Dollar Tree stock fell sharply on the news, with shares down about 8% in pre-market trading. Along with the big quarterly loss, the company said it took on a $594 million charge in connection with its store portfolio review.
The Chesapeake, Virginia-based Dollar Tree said it will close 600 of its Family Dollar stores during the first half of the 2024 fiscal year. It plans to close roughly 370 more Family Dollar locations as their leases expire. And it plans to close 30 Dollar Tree stores over the next few years.
Dollar Tree said late last year that it would evaluate whether Family Dollar stores should be closed as the company looks to maximize growth.
The company missed Wall Street’s expectations. Dollar Tree generated revenue of $8.6 billion, or earnings of about $2.55 per share during the fourth quarter. But it posted a net loss of $1.71 billion, about $7.85 per share.
This is a developing story and will be updated.