Dj Dollar Tree Merchandising Chief To Step Down Sooner Than Expected

By Kelly Cloonan

Dollar Tree said Chief Merchandising Officer Richard McNeely will depart his role sooner than previously planned.

McNeely will step down at the end of the company's fiscal 2025, which ends Jan. 31, as part of his transition to retirement in April, the discount-store operator disclosed in a Friday filing with the Securities and Exchange Commission.

Brent Beebe will assume the role Feb. 1 as a result, the company said.

Dollar Tree previously said the transition would occur in April.

Beebe is currently senior vice president of merchandising and marketing. The company had named him as McNeely's successor in September.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

JPMorgan Chase’s (JPM) head of equity strategy, Dubravko Lakos-Bujas, believes that U.S. President Donald Trump’s administration is likely to increase its affordability efforts ahead of the midterm election season and this will boost companies targeting low-income consumers.

Lakos-Bujas said in a note to clients, according to a CNBC report, that while the White House’s affordability efforts at present have not had widespread impact, this would likely change ahead of the November midterm elections.

“A shift in policymaking towards affordability has favored value-oriented themes as the administration positions itself ahead of the November midterm elections,” Lakos-Bujas said in the note.

The bank named 10 U.S. companies likely to benefit from its exposure to lower-income consumers.

Analyst Rationale

Lakos-Bujas said that he continues to favor stocks catering to the low-end consumer, a group that has been strained by persistently high inflation, adding that tax cuts in the “big beautiful bill” and falling gasoline prices are reasons to be optimistic about this group.

The analyst also highlighted Trump’s efforts to cap credit card rates in the short term and ban large institutions from buying houses as signs of the president’s growing focus on affordability.

Trump said earlier this month that he would introduce a one-year 10% cap on credit card interest rates, citing the exorbitantly high rates at present. The President also said that he will ban large institutional investors from buying single-family homes to address housing affordability amid soaring home prices. Separately, Trump also said he would be instructing representatives to buy $200 billion in mortgage bonds to bring down mortgage rates and make the cost of owning a home more affordable.

The Companies That Made The Cut

Consumer retailers Dollar Tree Inc. (DLTR) and Dollar General Corp. (DG) made it to the list, along with off-price retailer Burlington Stores Inc. (BURL) and multinational company Walmart Inc. (WMT).

Hunt-focused value retailer Dollar Tree recently received a downgrade from BNP Paribas to ‘Underperform’ from ‘Neutral’ and a cut in its price target to $87, down from $118, citing a weaker sales environment and a fall in consumable units. However, DLT shares have gained over 78% in the past year.

Meanwhile, Walmart has been gaining from a recent surge in AI-driven traffic, emerging as a key product discovery entry point for consumers. WMT shares have risen over 25% in the last one year.

Financial companies Citigroup Inc. (C) and Western Union Co. (WU) also made the cut. AI-lending platform Upstart Holdings (UPST), and credit card company Bread Financial Holdings (BFH) were the other financial companies that Lakos-Bujas named as potential beneficiaries from Trump’s affordability push.

Others on the analyst’s list include low-cost flyer Southwest Airlines Co. (LUV) and hospitality company Choice Hotels International, Inc. (CHH).

Shares of C and BFH have gained over 38% and 6% in the past year while shares of WU and UPST have each lost over 8% and 35% respectively in the same period.

LUV stock has risen over 32% while CHH stock has lost over 28% in the last 12 months.

Meanwhile, S&P Retail Select Industry Index (SPSIRE), which features discount retailers, gained over 10% in the past year and the State Street Consumer Staples Select Sector SPDR ETF (XLP) gained over 6%.

Shares of Dollar Tree Inc. (DLTR) fell nearly 3% on Wednesday after BNP Paribas downgraded the stock, citing a softer sales environment amid macroeconomic headwinds.

DLTR stock has shed around 8% over the past three sessions.

The firm downgraded Dollar Tree to ‘Underperform’ from ‘Neutral’ and cut its price target to $87, down from $118, according to The Fly. This represents a 33.3% drop from the current price of $130.5 per share.

The firm sees a “more tepid” sales environment for the company, as the impact of recent price hikes fades while macroeconomic headwinds intensify. Dollar Tree’s consumable units are falling, and the benefits from its multi-price point strategy are waning, BNP Paribas noted.

The firm also pointed out that Dollar Tree is facing challenges from tax code changes, the adoption of weight-loss drugs, and the rise of agentic commerce.

Outlook Remains Bullish

Last month, Dollar Tree raised its fiscal 2025 earnings outlook to a range of $5.60 to $5.80 per share, up from its prior forecast of $5.32 to $5.72. Analysts currently expect earnings of $5.73 per share, according to Fiscal.ai data.

The company also updated its sales guidance, projecting net sales of $19.35 billion to $19.45 billion, alongside comparable sales growth of 5% to 5.5%. Previously, the retailer had forecast net sales of $19.3 billion to $19.5 billion and comparable sales growth of 4% to 6%. Wall Street expects the company to post sales at the upper end of the range.

How Did Stocktwits Users React?

Despite the intraday slide, retail sentiment on Stocktwits turned ‘neutral’ from ‘bearish’ a day earlier.

DLTR shares have seen significant buying interest over the past year, gaining nearly 80%.