DLTR was down a touch pre-market after missing slightly on top and bottom line expectations, and then green for a spell after the earnings call. Currently starting the day in the green. Same store sales is still positive at both of its chains, with Dollar Tree at +5.4% and Family Dollar +2.0%. Sales mix continues to trend towards low-margin consumables.

I haven't had a chance to review the earnings transcript or 10-Q yet, but it looks like EBIT margins continue to compress at Family Dollar. Whatever the cause, the key item for DG shareholders is probably that DLTR has "has initiated a comprehensive review of its Family Dollar portfolio to address stores that are not aligned with its transformative vision for the company."

I think Alex Morris of TSOH had this FDO v DG dynamic right from the start, and this is likely positive news in the long term for DG going forward: https://thescienceofhitting.com/p/dollar-general-f...

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