Dollar Tree: Stable Currently, Future Pegged On A Remodeled Family Tree

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About: Dollar Tree, Inc. (DLTR)
by: JP Research
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JP Research
Long/short equity, Growth, long-term horizon, macro
Summary

The Family Dollar segment continues to experience headwinds leading to decelerating growth.

Global trade wars continued to weigh on margins.

Reliance on store renovations to drive top-line growth.

Concerns on Family Dollar and low-end consumers trading up longer term.

At 12x PE, we think there are better names to own in retail.

Management at Dollar Tree (NASDAQ:DLTR) has seen a rather difficult quarter as tariffs from the global trade wars affect their margins. Headwinds are actively impacting the firm's top lines and leading to a