Dollar Tree (NASDAQ:DLTR) stock is heading higher Tuesday after the company saw positive results from its price increase tests.
Dollar Tree has been toying around with the idea of increasing the prices of most items offered in its stores. This has seen it boosting the price to $1.25, instead of the $1 that customers are used to. However, that doesn’t seem to be diminishing demand for the discount retailer.
Dollar Tree polled customers to learn more about their feelings on the price increase. 77% of them were almost immediately aware of the change. Also, 91% of customer surveyed said they would continue to shop at the retail chain just frequently, if not more, despite the price hike.
Michael Witynski, president and CEO of Dollar Tree, said the following about the price change in the company’s Q3 earnings report.
“Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide. Accordingly, we have begun rolling out the $1.25 price point at all Dollar Tree stores nationwide.”
Earnings results for the most recent quarter were another bright spot for DLTR stock today. The company reported diluted earnings per share of 96 cents, which matches Wall Street’s estimate. Its revenue of $6.42 billion was also just above analysts’ estimates of $6.41 billion for Q3 2021.
DLTR stock is experiencing a decent amount of trading on today’s news. As of this writing, some 2.5 million shares have changed hands. That’s closing in on the stock’s daily average trading volume of 4.7 million shares.
DLTR stock was up 6.2% as of Tuesday morning.
Investors seeking more stock news today will want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.