Dollar Tree Inc. exceeded expectations with a 2.4% increase in same-store sales for its fourth quarter ending February 2, driven by stronger holiday season traffic at its flagship stores. The Chesapeake, Virginia-based retailer saw its shares rise 4% following the report.
The company faces pressure from activist investor Starboard Value LP to divest its underperforming Family Dollar chain. Analysts had projected a 1.49% sales increase, according to Refinitiv data, but Dollar Tree delivered higher results.
Net sales declined to $6.21 billion from $6.36 billion during the period. Dollar Tree also revealed plans to close 390 Family Dollar locations and renovate 1,000 stores as part of its restructuring efforts.
Reporting by Soundarya J in Bengaluru; Editing by James Emmanuel
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