Yahoo Finance Here’s How Much You’d Have Today If You Invested $1,000 in Dollar Tree Stock 10 Years Ago
Dollar Tree stock is expanding fast and raising dividends. If you purchased shares a decade ago, your investment would be doing pretty well right now. According to Zacks Equity Research, $1,000 of Dollar Tree stock purchased in March 2014 would be worth $2,760.23, or a 176.02% gain, as of early March 2024.
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Dollar Tree shares have even outpaced the industry over the past three months. The S&P gained 171.03%, while gold went up 51.49% over the same time period, Zacks reported. The chain has experienced sales growth across segments, higher traffic, and market share gains. According to the company’s most recent earnings report, consolidated net sales increased by 11.9% to $8.63 billion in 2023 for Dollar Store and its subsidiary Family Dollar.
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Dollar Tree To Raise Price Cap Due to Increased Costs
According to The Motley Fool, Dollar Tree dealt with higher freight costs due to the pandemic’s effects, but the dollar store chain has been able to manage the resulting issues with price increases. The chain raised its price cap to $5 in June, and it will raise the cap to $7 this year.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said in a recent earnings call, as previously reported by GOBankingRates.
Over the past year, the chain has made progress on optimizing its store portfolio through store openings, renovations, re-banners and closings, Zacks added. The publication noted that its new H2, Dollar Tree Plus! and Combo Stores hold potential.
However, Dollar Tree forecasts that its 2024 sales will be weak and said it closed nearly 1,000 of its Family Dollar stores nationwide, Marketplace reported. The retailer is facing competition from Walmart and Chinese online retailer Temu. Marketplace pointed out that Dollar General seems to be doing better than Dollar Tree, in part because it is expanding its food and grocery offerings.
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This article originally appeared on GOBankingRates.com: Here’s How Much You’d Have Today If You Invested $1,000 in Dollar Tree Stock 10 Years Ago