Solange buys DLTR 66.95: Dollar Tree expects third-quarter sales to more than double, to a range of $4.78 billion-$4.87 billion.

Dollar Tree is spending much more on renovating stores and improving merchandise than it originally expected to, and the effects are likely to be felt for some time. Things are simply not going as smoothly as the company anticipated when it made the deal. It seems that Dollar Tree assumed it could simply rebanner existing Family Dollar stores under the new name and bring customers back to the stores. Last quarter, Dollar Tree's gross margin fell to 28.4% year over year, a nearly 6-percentage-point year-over-year contraction. One reason for such a deterioration in profitability is that Dollar Tree's margins are declining substantially with Family Dollar in tow.


Lura:
Dollar Tree's stock fell 9% after the company reported its second-quarter earnings results on Sept. 1. Sales grew 48% year over year, to $3.01 billion in total sales, which looks outstanding.

Jona:
Here's why Dollar Tree might be regretting its massive takeover of Family Dollar.

Lindsy:
Looking back, it appears there wasn't much of a good reason for Dollar Tree to acquire Family Dollar.

Arlene:
What was once hailed as a great growth strategy has turned into a nightmare of rising costs and sagging sales.

Mercedes:
Ken Griffin , on the other hand, chose to dump roughly a quarter of his stake in the company, leaving his fund, Citadel Investment Group, with 2.16 million shares.

Dionne:
However, most of the top ten shareholders of the stock have increased their investments, with Phill Gross and Robert Atchinson among them.

Madalyn:
He has cited lower volatility compared to its peers and higher expected revenue growth among the factors that triggered the upgrade of BlackRock.

Isa:
The stock shares a consensus 12-month target price of $81.66, which has an upside of 22.8% against current trading price.

Carisa:
Among 26 analysts covering the stock, 12 prefer a Buy rating while three mark the stock a Sell. 11 analysts are still cautious on the stock as they have recommended a Hold rating.

Eileen:
For the last quarter, the retailer reported comparative sales growth of 2.4%, but Credit Suisse believes the growth will be restricted to 1-2% for next couple of quarters after acquiring Family Dollar.

Dollar Tree (NASDAQ:DLTR)
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