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Key Takeaways
- Dollar Tree shares rose Tuesday morning as markets reacted to the news that the discount retailer is changing its CEO.
- The company said after the bell Monday that outgoing CEO Rick Dreiling is stepping down immediately to deal with health issues.
- Dollar Tree also reiterated its guidance for the third quarter, and said its strategic review of a potential sale or spin-off of Family Dollar is progressing.
Dollar Tree (DLTR) shares jumped Tuesday morning on news that the discount retailer is beginning the search for a new CEO.
The company’s previous chairman and CEO, Rick Dreiling, stepped away from the roles as of November 3. He did so to spend time with family as his health has seen “new challenges” emerge over the last two months, Dreiling said in a company news release late Monday.
Dollar Tree’s chief operating officer (COO) Michael Creedon will become the interim CEO, according to a news release, as the company begins its search for a new permanent leader.
Q3 Outlook Affirmed, Family Dollar Evaluation Progressing
Dollar Tree also reiterated its third-quarter outlook a month before it plans to report earnings. The retailer’s first two quarters of earnings have each missed estimates in 2024. The company’s executives have said Dollar Tree has faced “immense pressures” as consumers cut spending.
Also on Monday, Dollar Tree said it’s continuing to review a best path forward for the Family Dollar brand. In its first quarter results over the summer, the company said it was starting a review of options for Family Dollar about a decade after acquiring the discount retail rival, including a potential sale or spinning it off into its own company again.
Dollar Tree shares were up about 3.3% to $69.00 in premarket trading Tuesday, but have still lost more than half their value this year.