Dollar Tree reports 1Q earnings before the opening bell tomorrow. Zacks expects the company to post EPS of $1.43 and revenue of $7.63 billion. The shares have underperformed the overall market this year and are down about 15% in 2024.  The Option Market is pricing in a +/- move of about $11.75 or nearly 10% either way so Implied Volatility levels are elevated going into the report.

Dollar Tree has historically been struggling versus its rival Dollar General (DG), with its Family Dollar stores receiving safety-related complaints among other issues. While CEO Rick Dreiling, who took the reins at the beginning of 2023, has been closing unprofitable Family Dollar stores, Dollar Tree continues to expand its footprint, acquiring the leases of 170 bankrupt 99 Cents Only stores last month, to be converted into Dollar Tree locations as early as fall of this year.

However, as inflation remains high and other retailers look to bring in consumers, the dollar stores could be in trouble – Target (TGT) recently announced price cuts and has put a lot more strategy into being a pleasant place to shop. Will Dollar Tree continue its turnaround fast enough for the Street’s liking? Or will its stock be punished further? Tune into Schwab Network for earnings analysis and more.

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