We are initiating our coverage on Dollar Tree with a Neutral
recommendation. We believe that the company is progressing well
with its growth endeavors, which include store expansion
strategies, omni-channel initiatives, revamping of store formats
and venture into new markets. Moreover, we commend Dollar Tree's
strategic investments toward incorporating technological
enhancements which will drive its top and bottom line in long run.
Further, Dollar Tree's accelerated share repurchase program
reflects management's confidence in the business and consistency of
its cash flow generation ability. However, the stock remains
susceptible to the sluggish economic recovery and cautious consumer
spending. This has also been reflected in management's sales and
earnings guidance for fiscal 2013.
Founded in 1986 and headquartered in Chesapeake, Virginia,
Dollar Tree, Inc. (DLTR) is an operator of discount variety stores
offering merchandise at a fixed price point of $1.00. Its stores
successfully operate in major metropolitan areas, mid-sized cities
and small towns and perform well in of the various locations. It
offers a wide range of quality everyday general merchandise in many
categories, including house wares, seasonal goods, candy and food,
toys, health and beauty care, gifts, party goods, stationery,
books, personal accessories, and other consumer items.
As of Nov 2, 2013, Dollar Tree operated a total number of 4,953
stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$,
Dollar Tree Canada, Dollar Giant, and Dollar Bills. The company's
stores are spread across 48 states in the U.S. and District of
Columbia as well as the Canadian provinces of British Columbia,
Ontario, Alberta, Saskatchewan and Manitoba. Its stores are
supported by a nationwide logistics network of ten distribution
Dollar Tree also owns an e-Commerce platform DollarTree.com
which sells its merchandise in bulk quantities to individuals and
small businesses as well as organizations. Through its online
platform, the company advertises its in-store-events and showcases
its special and seasonal promotions for featured products.
Dollar Tree, Inc. (DLTR): Read the Full Research
DOLLAR TREE INC (DLTR): Free Stock Analysis
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