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

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

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