Dollar Tree reported a loss of $98 million for the three months to Aug. 1, from a profit of $121.5 million in 2014, creating questions about the benefits of its Family Dollar Inc. acquisition and how long it takes to materialize the business. After completing its $9 billion purchase of Family Dollar in July, the retailer now operates almost 14, 000 stores same under the names of Dollar Giant, Dollar Bills and Deal$.
“We’re very pleased with the process and with the early results”, Robert L. Sasser, CEO, told analysts. We remain confident in our ability to deliver $300 million in annual run-rate synergies by the end of the third year post-acquisition. I am more enthusiastic than ever about the opportunity this merger presents to our customers, our clients, our associates and our shareholders”.
The net sales improved by 48.3% in comparison to the prior-year period, primarily because of the inclusion of sales worth $811.6 million from the Family Dollar segment.