Dollar Tree CEO: We've overcome the tariff impact so far

Channel: Fox Business
Published: 05/30/2019

Description
Dollar Tree CEO Gary Philbin on the company's first-quarter results, the potential impact of tariffs, the stores the company is closing despite its broader expansion plan. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact bo...



Transcript
Look at dollar tree discount store, guys release their earnings report this morning, income up from last year, but their forecast is looking a little gray. Gary philbin is dollar trees, ceo and he joins us now. I want to talk cha tariffs gary because, according to credit, suisse forty to forty two percent of your merchandise comes from china. With these tears being imposed, you got ta be worried r ...
ght well. Thank you, stuart. Thank you for having me on today. It'S a great day at dollar tree and our family dollar banners that we did announce a top-line revenue, bead same store, sales beat any ps is at the high end, but the tariffs piece obviously has our focuswe import about forty percent at dollar tree about half of That and family dollar and let me give a little credit to our merchants - that through our first lists of one two and three we've overcome the tariff impact so far, so i think, as we talk about tariffs, the question is really around: does list for come into Play or not well well, look i mean going forward. We have the possibility of twenty five percent tariffs being added on to another. Well, three hundred and fifty billion dollars worth of chinese goods coming in here, that's in the future. Already today, at the port of long beach, california they're imposing those twenty five percent tariffs on stuffcoming in from china. Are you? Are you going to eat? All of that increase, or are you gon na, pass it along to consumers? Well, keep in mind for dollar tree everything's a dollar, so it's never about raising our retail it's about changing product. If we have to, and over the years we have a heritage of doing that at family dar.

We obviously have multi price point, just not sell it. I mean if everything's a dollar and the price that to you goes up. You just not sell it. If you can't sell it for $ 1. That'S a little bit of our history. We'Ve always changed items, but with our current tariffs through list one, two andthree we've moved some product out of china. You can't move supply chains easily, we really project, so we can land up more cheaply as we put into content. So it's it's an impact on us, but it's something our merchants are. I won't waste this good crisis, but they're they're well-equipped to take a look and say: how do we find items great value and continue to bring it into the the us now? I believe that you've already closed 140 stores and another 150 may close by the end of july. Why are you doing that? Well, let me put into context what we're closing are. Those stores are family dollar banners when we bought the chain and2015. We really haven't closed.

Any stores, except in normal course, we're gon na open up 500 stores this year between family dollar in dollar tree. That'S a small chain for anyone else. The stores we're closing are usually too old or the town that they're in has changed and the retails on the other side. So what we're a growth company, but this does harvest some of our lower-performing still see. I i always think of you as a bricks and mortar operation. I don't go to dollar tree or family dollar. I don't go online to get something from your stores. I go to the store, so you're, not part of the retail shrinkage. Are you i think you'reexactly right people come to our store because they want to see what's new in a family dollar oftentimes? You know we serve a customer. That may not know she has $ 10 till the end of the week, so our stores are about come in, see the wow factor at both dollar tree and family dollar, and we deliver on the basics, we're brick-and-mortar disruption and retail tends to help us yeah guy Philbin, look we really want to thank you for coming on the show today great report and your stocks doing really really well gary, so we're glad to have you on the show. Thank you, sir. Thank you, stuart.



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