Dollar Tree (DLTR.US) reported a loss of $1.71 billion in Q4: forced to close over a thousand stores, with closure costs exceeding $1 billion.

On March 13th, before the US stock market opened, Dollar Tree (DLTR.US) announced its fourth quarter performance for the 2023 fiscal year. The financial report showed that Dollar Tree's Q4 revenue was $8.64 billion, an increase of 11.9% compared to the same period last year, falling short of the market's expectation of $8.7 billion; with a net loss of $1.71 billion, compared to a net profit of $452.2 million in the same period last year; and a loss per share of $7.85, compared to an earnings per share of $2.04 in the same period last year. In November of last year, Dollar Tree announced a review of its Family Dollar business, including the potential closure of underperforming stores to restore growth. Dollar Tree plans to close nearly 1,000 stores, resulting in an impairment charge of over $1 billion. The company also reported $594.4 million in portfolio optimization evaluation costs and $950 million in other asset impairment charges. Excluding the above items, the adjusted earnings per share were $2.55, including a cost of $0.17 related to general liability claims, falling short of the market's expectation of $2.65. Driven by a 4.6% increase in foot traffic, the company's same-store sales (including the Family Dollar brand) increased by 3%. Dollar Tree's same-store net sales increased by 6.3%, while Family Dollar's same-store sales declined by 1.2%. Due to a decrease in freight costs, increased sales leverage, and higher allowances, the company's gross margin increased by 120 basis points to 32.1%, with an adjusted gross margin increase of 220 basis points to 33.1%. The operating profit margin expanded by 70 basis points to reach 8.7%. 219 new stores were opened in the fourth quarter, bringing the total number of new stores for the year to 641. Performance Guidance: Dollar Tree expects net sales for the 2024 fiscal year to be between $31 billion and $32 billion, with earnings per share between $6.70 and $7.30.