Dollar Tree Profits Drop 38 Percent

Dollar Tree (Chesapeake, Va.) reported its profits dropped 38 percent in the third-quarter. Sales, however, were stronger than expected. Analysts had expected $4.84 billion-worth of sales, but the company reached $4.95 billion for the quarter. Dollar Tree and Family Dollar stores both saw small, single-digit gains in same-store sales for the quarter.

This comes after the company’s acquisition of Family Dollar in July, as it seeks to overhaul and improve the brand's business.

Lower profits were attributed, in part, to overhauling and improving Family Tree’s inventory and product selection. It anticipates that both brands will perform better during the holiday season.

The company plans to reduce the combined brands’ annual expenses by $300 million over the next three years, reports The Charlotte Observer.