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If You Invested $1000 in Dollar Tree 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Dollar Tree (DLTR - Free Report) ten years ago? It may not have been easy to hold on to DLTR for all that time, but if you did, how much would your investment be worth today?
Dollar Tree's Business In-Depth
With that in mind, let's take a look at Dollar Tree's main business drivers.
Founded in 1986 and headquartered in Chesapeake, VA, Dollar Tree Inc. is an operator of discount variety stores offering merchandise and other assortments. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns. The company offers a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items. Its stores are supported by a nationwide logistics network and distribution centers.
Dollar Tree also owns an e-commerce platform – DollarTree.com – which sells its merchandise in bulk 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. Further, it acquired Family Dollar Stores, Inc. on July 6, 2015.
The company operates in two reporting business segments: Dollar Tree and Family Dollar.
Dollar Tree: Being the major operator of discount variety stores, this segment offers merchandise at the fixed price point of $1.00. The segment has nearly 7,652 stores operating under the Dollar Tree and Dollar Tree Canada banners, 12 distribution centers in the United States and two in Canada. Dollar Tree stores primarily range from 8,000 - 10,000 selling square feet.
Family Dollar: This segment operates general merchandise discount retail stores with competitively-priced merchandise in the neighborhood stores. It has nearly 7,827 stores, which sell merchandise at prices ranging from $1.00 to $10.00. These stores primarily range from 6,000 - 8,000 selling square feet. The segment includes store operations under the Family Dollar brand and 11 distribution centers.
As of Oct 28, 2023, DLTR operated 16,622 stores in 48 states and five Canada provinces.
(Notes: Zacks identifies fiscal years by the month in which the fiscal year ends, while DLTR identifies its fiscal year by the calendar year in which it begins; so comparable figures for any given fiscal year, as published by DLTR, will refer to this same fiscal year as being the year before the same year, as identified by Zacks.)
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dollar Tree, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in March 2014 would be worth $2,760.23, or a 176.02% gain, as of March 6, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 171.03% and the price of gold went up 51.49% over the same time frame.
Going forward, analysts are expecting more upside for DLTR.
Shares of Dollar Tree have outpaced the industry in the past three months. The company has been benefiting from sales growth across segments, higher traffic trends and robust market share gains. This led to year-over-year sales growth of 5.4% in third-quarter fiscal 2023. DLTR’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings bodes well. Its new H2, Dollar Tree Plus! and Combo Stores hold potential. However, unfavorable sales mix, higher shrink, product cost inflation, a product recall, and wage investments in distribution center payroll hurt margins and bottom line in the fiscal third quarter. DLTR narrowed its guidance for fiscal 2023 on softer demand from low-income households, persistent increase in shrink and sales mix headwinds throughout fiscal 2023.
The stock is up 8.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.
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If You Invested $1000 in Dollar Tree 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Dollar Tree (DLTR - Free Report) ten years ago? It may not have been easy to hold on to DLTR for all that time, but if you did, how much would your investment be worth today?
Dollar Tree's Business In-Depth
With that in mind, let's take a look at Dollar Tree's main business drivers.
Founded in 1986 and headquartered in Chesapeake, VA, Dollar Tree Inc. is an operator of discount variety stores offering merchandise and other assortments. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns. The company offers a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items. Its stores are supported by a nationwide logistics network and distribution centers.
Dollar Tree also owns an e-commerce platform – DollarTree.com – which sells its merchandise in bulk 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. Further, it acquired Family Dollar Stores, Inc. on July 6, 2015.
The company operates in two reporting business segments: Dollar Tree and Family Dollar.
Dollar Tree: Being the major operator of discount variety stores, this segment offers merchandise at the fixed price point of $1.00. The segment has nearly 7,652 stores operating under the Dollar Tree and Dollar Tree Canada banners, 12 distribution centers in the United States and two in Canada. Dollar Tree stores primarily range from 8,000 - 10,000 selling square feet.
Family Dollar: This segment operates general merchandise discount retail stores with competitively-priced merchandise in the neighborhood stores. It has nearly 7,827 stores, which sell merchandise at prices ranging from $1.00 to $10.00. These stores primarily range from 6,000 - 8,000 selling square feet. The segment includes store operations under the Family Dollar brand and 11 distribution centers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dollar Tree, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in March 2014 would be worth $2,760.23, or a 176.02% gain, as of March 6, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 171.03% and the price of gold went up 51.49% over the same time frame.
Going forward, analysts are expecting more upside for DLTR.
Shares of Dollar Tree have outpaced the industry in the past three months. The company has been benefiting from sales growth across segments, higher traffic trends and robust market share gains. This led to year-over-year sales growth of 5.4% in third-quarter fiscal 2023. DLTR’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings bodes well. Its new H2, Dollar Tree Plus! and Combo Stores hold potential. However, unfavorable sales mix, higher shrink, product cost inflation, a product recall, and wage investments in distribution center payroll hurt margins and bottom line in the fiscal third quarter. DLTR narrowed its guidance for fiscal 2023 on softer demand from low-income households, persistent increase in shrink and sales mix headwinds throughout fiscal 2023.
The stock is up 8.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.