Dollar Tree considers 'strategic alternatives' for troubled Family Dollar unit
(ZEROHEDGE) – Dollar Tree shares leaked lower in premarket trading after the company reported adjusted earnings per share for the first quarter, which missed the average analyst estimate tracked by Bloomberg. The company announced "strategic alternatives" for its troubled Dollar Family Business segment, an indication a potential sale or spinoff could be ahead.
It's worth noting that Wall Street analysts have highlighted the negative impact of the struggling Family Dollar unit on Dollar Tree's overall earnings. The unit was acquired during a fierce bidding war with Dollar General for $8 billion in 2015.
Perhaps this is why Dollar Tree announced Wednesday that its "has initiated a formal review of strategic alternatives for the Company's Family Dollar business segment, which could include among others, a potential sale, spinoff or other disposition of the business."