Dollar Tree loses a few cents after CEO steps down
Rick Dreiling, Dollar Tree’s CEO of over two years, is stepping down from the discount chain for health reasons, the company said on Monday. Shares of Dollar Tree were down about 0.6% during the opening hour of trading on Tuesday, after having been up more than 4% in the premarket.
Dollar Tree’s COO Michael Creedon will become the interim CEO while the company searches for a new permanent CEO.
This year, discount stores were telling a different story than the rest of the retail industry. At times when consumers feel the financially strained, dollar stores are usually seen as a safe haven. Yet, Dollar Tree was down more than 50% so far this year, while rival Dollar General fell over 40%.
Some analysts raised their eyebrows at the news. “The lack of a permanent CEO could impact key business decisions heading into the holidays and 2025,” analysts at Telsey Advisory Group wrote in a note.
Dreiling, who came to Dollar Tree from Dollar General, was a key part of Dollar Tree’s strategic review of Family Dollar — the subsidiary that targets lower-income households and has been struggling with operating profits. Dollar Tree previously said that it could consider a potential sale or spin-off of Family Dollar, and it reiterated the commitment to complete the review on Monday.
Meanwhile, Dollar Tree reaffirmed its guidance for the third quarter of 2024, noting that same-store net sales performed strongly. The company reports its third-quarter results on Dec. 4.
This year, discount stores were telling a different story than the rest of the retail industry. At times when consumers feel the financially strained, dollar stores are usually seen as a safe haven. Yet, Dollar Tree was down more than 50% so far this year, while rival Dollar General fell over 40%.
Some analysts raised their eyebrows at the news. “The lack of a permanent CEO could impact key business decisions heading into the holidays and 2025,” analysts at Telsey Advisory Group wrote in a note.
Dreiling, who came to Dollar Tree from Dollar General, was a key part of Dollar Tree’s strategic review of Family Dollar — the subsidiary that targets lower-income households and has been struggling with operating profits. Dollar Tree previously said that it could consider a potential sale or spin-off of Family Dollar, and it reiterated the commitment to complete the review on Monday.
Meanwhile, Dollar Tree reaffirmed its guidance for the third quarter of 2024, noting that same-store net sales performed strongly. The company reports its third-quarter results on Dec. 4.
