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What’s happening: Shares of Dollar Tree rose on Wednesday, after the company released its fourth-quarter results.
What happened: The company reported better-than-expected earnings for the fourth quarter.
Dollar Tree also announced plans to sell its Family Dollar business, which lent further support to the stock on Wednesday.
How were the results: The Chesapeake, Virginia-based company reported marginal growth in sales for the quarter ended February 1.
Why it matters: Dollar Tree had bought Family Dollar for around $9 billion in 2015, but it has been facing stiff competition from larger retailers like Walmart.
The Family Dollar business was also struggling with sales of discretionary products, with consumers cutting back their spending due to elevated inflation.
Dollar Tree announced that it is selling its Family Dollar business to Brigade Capital Management and Macellum Capital Management for approximately $1 billion. Net proceeds from the sale are projected to total around $804 million.
The company is also seeing an impact of around $20 million per month from President Donald Trump’s latest tariffs announcements targeting China, Canada and Mexico.
Dollar Tree’s operating margins shrank 390 basis points to 10.7% in the fourth quarter. The company opened 33 Dollar Tree stores during the quarter, which brought total openings to 525 for the year.
Management guided to full-year net sales from continuing operations of $18.5-$19.1 billion, while projecting same-store sales growth at 3%-5%. The company expects adjusted earnings from continuing operations to reach $5.00-$5.50 per share in 2025.
How shares responded: Dollar Tree’s shares climbed 4.4% to close at $69.21 on Wednesday, following the release of quarterly results. The stock has lost more than 9% year-to-date.
What to watch: Investors will continue monitoring the Trump administration’s tariff announcements.
Context: Crude oil prices rose on Wednesday, following the release of government data showing a decline in US crude oil and fuel inventories.
Details: The Energy Information Administration (EIA) said on Wednesday that crude oil inventories in the US had declined by 3.341 million barrels in the week ended March 21, compared to market estimates of a 1.6 million draw.
Crude stockpiles at the Cushing, Oklahoma, delivery hub contracted by 0.755 million barrels in the week.
Gasoline stockpiles declined by 1.446 million, compared to market estimates of a 1.6 million drawdown, while distillate stockpiles fell by 0.421 million barrels, versus expectations of a 1.5 million decline.
Oil prices have remained volatile this week, after US President Donald Trump threatened to levy a 25% tariff on any country buying oil or gas from Venezuela.
Strength in the US dollar also weighed on crude oil prices on Wednesday, as a higher greenback makes commodities more expensive for foreign currency holders.
Brent crude futures gained 77 cents, or 1.05%, to close at $73.79 a barrel on Wednesday. US WTI crude futures climbed 65 cents, or 0.94%, to settle at $69.65 per barrel.
What to watch: Investors await the release of data on the EIA’s data on natural gas stockpiles from the US today (1830 UAE Time). Analysts expect US natural gas inventories to increase by 37 billion cubic feet in the latest week, following a gain of 9 billion cubic feet in the week ending March 14.
Other Markets: US trading indices closed lower on Wednesday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 0.31%, 1.12% and 1.83%, respectively.
Ukraine and Russia blamed each other for violating the ceasefire deal on energy infrastructure brokered by the US. The news sent the RUB/USD pair fell slightly in forex trading this morning.
Taiwan’s consumer confidence index fell to 71.86 in March, from 72.59 in the previous month. The reading being the weakest since April 2024 exerted pressure on the TWD/USD forex pair.
China’s industrial profits declined by 0.3% year-over-year to 910.99 billion yuan during the first two months, compared to a 3.3% decline in 2024, which sent the CNY/USD pair slightly higher in forex trading this morning.
Colombia’s industrial confidence indicator fell to 0.2 in February, from January’s reading of 2, exerting pressure on the COP/USD forex pair.
UK’s car production contracted by 11.6% year-over-year to 82,178 units in February. However, the GBP/USD pair rose in forex trading this morning.
Spain’s retail sales (1200 UAE Time), Eurozone’s loans to companies (1300 UAE Time), loans to households (1300 UAE Time), M3 money supply (1300 UAE Time) and European Central Bank’s General Council Meeting (1500 UAE Time), South Africa’s PPI (1330 UAE Time), Central Bank of Brazil’s monetary policy report (1500 UAE Time) and Brazil’s IPCA mid-month CPI (1600 UAE Time), Turkey’s foreign exchange reserves (1530 UAE Time), Mexico’s balance of trade (1600 UAE Time) and interest rate decision (2300 UAE Time), Canada’s average weekly earnings (1630 UAE Time), US GDP growth rate (1630 UAE Time), corporate profits (1630 UAE Time), goods trade balance (1630 UAE Time), initial jobless claims (1630 UAE Time), wholesale inventories (1630 UAE Time), continuing jobless claims (1630 UAE Time), core PCE prices (1630 UAE Time), real consumer spending (1630 UAE Time), pending home sales (1800 UAE Time), Kansas Fed composite index (1900 UAE Time), Kansas Fed manufacturing index (1900 UAE Time), as well as Argentina’s current account (2300 UAE Time) and economic activity (2300 UAE Time).
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