10 Best Department Store Stocks to Invest in

5. Dollar Tree, Inc. (NASDAQ:DLTR)

Number of Hedge Fund Holders: 64

Dollar Tree, Inc. (NASDAQ:DLTR) operates discount department stores and offers a wide range of merchandise under the business segments Dollar Tree and Family Dollar. Dollar Tree stores offer consumable merchandise, seasonal goods, and variety merchandise. The Family Dollar segment is a general merchandise retail discount store offering affordable merchandise in convenient neighborhood locations.

The company is focusing on boosting the growth of its Dollar Tree brand and is converting stores to its in-line multi-price 3.0 format. It is opening new stores and improving the in-store experience for its customers through customer service enhancements and renovations. In fiscal Q3 2024, the company converted another 720 stores to the 3.0 format, bringing the total number of converted Dollar Tree stores to around 2,300. These stores produced around 30% of the company’s total net sales in fiscal Q3 2024.

Despite some macroeconomic challenges, Dollar Tree, Inc. (NASDAQ:DLTR) is maintaining strong operational results. It reported a revenue of $7.56 billion in fiscal Q3 2024, exceeding the forecast of $7.446 billion. The company’s net sales also grew significantly, primarily due to its non-comparable stores. This growth was attributed to the company’s continued merchandising efforts for Family Dollar and Dollar Tree.

In a report released on March 7, Edward Kelly from Wells Fargo maintained a Buy rating on Dollar Tree, Inc. (NASDAQ:DLTR), with a price target of $85.00.