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Nov. 2, 2015, 4:24 PM
- Dollar Tree (DLTR +1.1%) says it's completed divesting some 330 Family Dollar (NYSE:FDO) stores to Dollar Express, in partnership with Sycamore Partners.
- Dollar Express is a portfolio company of private-equity firm Sycamore.
- The divestiture was in keeping with an FTC condition placed on Dollar Tree's $9.2B acquisition of Family Dollar, which closed in July after a lengthy pursuit.
Jul. 15, 2015, 12:36 PM
- Moody's raises its outlook on the U.S. retail industry to Positive from Stable on its view operating income will improve by 5% to 6% over the next 12 to 18 months.
- The ratings agency is focused on the expense side, seeing a leveraging of fixed costs and efficiency gains as helping to pad bottom lines.
- Sectors seen leading the way for profit growth are dollar stores (FDO, DG, DLTR), drug stores (WBA, CVS, RAD), and home improvement chains (HD, LOW).
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PMR, UGE, SZK
Jul. 3, 2015, 1:59 AM
- Putting to rest a year-long merger saga, Dollar Tree (NASDAQ:DLTR) has finally been given FTC approval to buy Family Dollar (NYSE:FDO) on condition they sell 330 Family Dollar stores.
- Following the $9.2B merger, Dollar Tree will control more than 13K stores across the U.S. and Canada, vaulting the company ahead of Dollar General (NYSE:DG) to become North America's biggest discount retailer, with more than $18B in annual sales.
- Dollar Tree expects the deal to close on Monday.
- Previously: DLTR, FDO ink deal with FTC; merger on track for July close (Jun. 16 2015)
Jul. 1, 2015, 4:45 PM
- Family Dollar Stores (NYSE:FDO): FQ3 EPS of $0.74 misses by $0.08.
- Revenue of $2.73B (+2.6% Y/Y) in-line.
Jun. 16, 2015, 5:34 PM
- Dollar Tree (NASDAQ:DLTR) and Family Dollar (NYSE:FDO) have "signed an Agreement Containing Consent Orders proposed by the staff of the [FTC]." The agreement, which remains subject to final approval by FTC commissioners, would allow Dollar Tree to acquire Family Dollar as long as it sells 330 Family Dollar stores "within a specified period" following the deal's closing. (8-K filing)
- The companies reiterate they expect the merger to close in early July. In May, DLTR/FDO announced they're selling 330 Family Dollar stores to P-E firm Sycamore Partners, in order to gain antitrust approval.
May 29, 2015, 5:34 PM
- Dollar Tree (NASDAQ:DLTR) agrees to sell 330 Family Dollar Stores (NYSE:FDO) stores to P-E firm Sycamore Partners to help gain antitrust approval for its $8.5B takeover of FDO.
- DLTR says the stores represent $45.5M of operating income for FDO, and that Sycamore intends to operate the stores under the Dollar Express name.
- DLTR says it hopes to close the merger in early July after securing FTC clearance.
May 21, 2015, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Apr. 10, 2015, 11:55 AM
- Sales per shopper increased 5.8% Y/Y in March at retail chains, according to data from RetailNext.
- Average transaction value was up 3.5%, while the number of conversions improved by 0.9%
- Total sales were off 3.2% on a 8.2% drop in traffic amid a problematic month for weather. The tallies don't include e-commerce.
- Higher-end store chains such as Lululemon (LULU -0.5%), Tiffany (TIF +0.3%), and Williams-Sonoma (WSM +0.5%) can benefit from the trend toward highly-focused shoppers - while traffic-dependent chains such as Family Dollar (FDO +0.1%), Dollar General (DG +0.6%), and Dollar Tree (DLTR +0.4%) rely on the impulse buys churned up by increased traffic.
Apr. 8, 2015, 8:12 AM
- Family Dollar (NYSE:FDO) reports comparable-store sales rose 0.5% in FQ2 as a higher number of transactions helped to offset a lower average transaction price.
- Sales of consumables were up 4.6% during the quarter, while sales for discretionary products fell off 1%.
- The company's gross profit rate increased 10 bbps to 33.1%.
- Operating profit rate fell 70 bps to 4.5% (partially due to mix).
- Inventory +3.5% to $1.72B.
- Merger update: A closing date by the end of May is anticipated for the Dollar Tree deal.
- Due to the pending merger with Dollar Tree, the company has pulled financial guidance.
- Previously: Family Dollar Stores beats by $0.01, revenue in-line
- FDO -0.2% premarket.
Apr. 8, 2015, 8:02 AM
- Family Dollar Stores (NYSE:FDO): FQ2 EPS of $0.74 beats by $0.01.
- Revenue of $2.8B (+2.9% Y/Y) in-line.
- Shares +0.38% PM.
Apr. 7, 2015, 5:49 PM
- Dollar Tree (NASDAQ:DLTR) says that the FTC has "substantially completed" its review of the company's $8.5B acquisition of Family Dollar (NYSE:FDO) and has identified about 340 stores to be divested, from a pool of about 500 locations reviewed.
- All or nearly all of the divestments should be Family Dollar stores, which the combined entity would sell to one or more of "multiple" interested buyers who would operate them as dollar stores. It was the low number of divestitures that prompted FDO shareholders to take a lower offer from Dollar Tree vs. the bid from Dollar General (NYSE:DG).
- In its 8-K, Dollar Tree says it hopes to close the merger in May.
- Family Dollar is part of earnings season's kickoff tomorrow, reporting before the bell. Analysts expect EPS of $0.73 on $2.8B in revenues.
- After hours: DLTR -0.7%.
- Previously: Dollar Tree says FTC reviewing more stores (Feb. 03 2015)
- Previously: Deal done: Dollar Tree lands Family Dollar (Jan. 22 2015)
Apr. 7, 2015, 5:30 PM
Apr. 1, 2015, 8:38 AM
- Discounters could face some increased pricing competition from Wal-Mart (NYSE:WMT) after the retail giant ratcheted up pressure on suppliers to reduce prices.
- The news from Bentonville might also create some headaches for large consumer products sellers such as Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB) which have struggled with pushing back against Wal-Mart's formidable leverage.
- On margin watch: Dollar Tree (NASDAQ:DLTR), Family Dollar (NYSE:FDO), Dollar General (NYSE:DG), Fred's (NASDAQ:FRED), Big Lots (NYSE:BIG), Five Below (NASDAQ:FIVE).
- Previously: Wal-Mart steps up pressure on suppliers to slash prices
Mar. 2, 2015, 1:44 PM
Feb. 27, 2015, 11:31 AM
- Factset has compiled a list of the most popular holdings of hedge funds at the end of Q4 and which stocks fell in or out of favor within the group.
- Overall, hedge funds increased their positions in the top 50 holdings during the quarter by 1%.
- Top 50 hedge fund consumer staples/discretionary stocks showing an increase: Family Dollar (NYSE:FDO) +1.3%, PepsiCo (NYSE:PEP) +20.3%, Priceline Group (NASDAQ:PCLN) +24.2%, Delta Air Lines (NYSE:DAL) +15.3%.
- Top 50 hedge fund consumer staples/discretionary stocks showing a decrease: Mastercard (NYSE:MA) -4.2%, Walgreen Boots Alliance (NASDAQ:WBA) -1.3%, Dollar General (NYSE:DG) -11.6%, Mondelez International (NASDAQ:MDLZ) -0.9%.
- Another way to look at the list is to examine which stocks are missing. Coca-Cola (NYSE:KO), Wal-Mart (NYSE:WMT), and Procter & Gamble (NYSE:PG) are in that club.
- Factset's hedge fund ownership report (.pdf)
Feb. 5, 2015, 9:08 AM
- Kraft Foods (NASDAQ:KRFT) has found a vibrant channel for its Velveeta brand in dollar stores.
- The company was very close to pulling the plug on the product last year amid soft grocery store sales.
- General Mills (NYSE:GIS) and Campbell Soup (NYSE:CPB) are also exploring selling more brands in dollar stores due to the potential for higher profit margins in certain categories.
- The development could aid the dollar store group (DLTR, DG, FDO) which has lost some quick-stop grocery market share to convenience stores.
Family Dollar Stores Inc provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes consumables, home products, apparel accessories, seasonal and electronics.
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