NEW YORK, NY / ACCESSWIRE / October 17, 2018 / Shares of Walmart were still in the green despite the company slashing its outlook for fiscal 2019. Shares of Dollar Tree were seeing big gains on the news that investor Carl Icahn has taken a stake in the company.
RDI Initiates Coverage on:
Dollar Tree, Inc.
Walmart Inc. shares closed up 2.12% on about 11 million shares traded yesterday. The big-box retailer saw a gain despite announcing that it has cut its earnings outlook. Walmart had cited the impact of its acquisition of Flipkart, an Indian e-commerce company. For fiscal 2019, Walmart is now expecting adjusted earnings per share in the range of $4.65 to $4.80. Previously the retailer had expected $4.90 to $5.05. Refinitiv was expecting EPS of $4.79. "We're adapting and transforming with speed to better serve our existing customers and reach new ones," said CEO Doug McMillon. "We're operating with discipline, balancing our short and long-term opportunities. While we're excited about what we've done so far, we aren't satisfied. As we execute today and build for tomorrow, our associates and unique omni-channel assets position us for success.
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Dollar Tree, Inc. shares closed up 6.83% on a little over 11 million shares traded on Tuesday. The discount retailer saw a pop in its share price after Wall Street learned that legendary investor Carl Icahn has taken a stake in the company. Shares rose as much as 7.1% on the news after The New York Post reported that Icahn had taken a "significant" stake in the Virginia-based company. It was in 2015 that Dollar Tree acquired Family Dollar for $8.5 billion after Icahn had pushed Family Dollar to sell. The investor had a 9.4% stake in the company and reportedly made about $200 million from the deal. Dollar Tree currently has some 14,000 locations across the U.S. and is planning to open 350 more namesake locations, 300 new Family Dollar locations, and rebrand 50 Family Dollar locations as Dollar Tree stores. Last week Dollar Tree announced that it has plans to hire 25,000 associates in a nationwide hiring event scheduled for this Wednesday. "I am so proud of the progress we are making within our Dollar Tree and Family Dollar brands on developing and retaining engaged associates as we continue to invest in our talent," stated Chief Human Resources Officer Betty Click.
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