By Sabrina Escobar
Dollar Tree said Thursday it appointed interim CEO Michael Creedon, Jr. to permanently head up the discount retailer's business.
The company has been looking for a long-term chief executive since November when former CEO Rick Dreiling left the company to focus on his health and his family.
Shares of the retailer were up 0.7% at $69.74 Thursday morning.
Creedon joined Dollar Tree in 2022 as chief operating officer and took over as interim CEO after Dreiling stepped down. Before Dollar Tree, Creedon spent nearly a decade holding leadership positions at Advance Auto Parts.
"It's a privilege to lead Dollar Tree at such a pivotal time," Creedon said. "My focus will continue to be on delivering long-term value to our associates, customers, and shareholders as a company that is rooted in strong values and operational excellence."
The company is still lookin g for a chief financial officer after it announced earlier this month that current CFO Jeff Davis was stepping down.
The leadership shake-up isn't wholly unexpected. Dreiling's C-suite was tasked with turning around a business that has struggled to deliver results and long lagged behind rivals during a difficult time for the dollar-store industry. Dollar Tree's sales have narrowly missed consensus expectations in three of the last four quarters. Earnings growth has also been lackluster.
Lower-income shoppers have been pressured by inflation, leaving them less money to spend on the nonessential goods that drive margin growth at dollar stores. The focus on essentials has also driven consumers to shop at retailers with wider grocery assortment, such as Walmart, which has eaten away at Dollar Tree's market share.
Dreiling became executive chairman of Dollar Tree's board in March of 2022 as part of a settlement with activist investor Mantle Ridge. About a year later, he was named chief executive after then-CEO Michael Witynski stepped down.
Write to Sabrina Escobar at sabrina.escobar@barrons.com
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December 19, 2024 09:28 ET (14:28 GMT)
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