While many companies are fretting the impact of the Trump administration’s tariffs, Hedgeye Consumer Staples analyst Daniel Biolsi says bargain retailer Dollar Tree may benefit from an unlikely source: price hikes.
“The company will offset these higher costs with its toolbox, which, now its new tool is raising prices,” Biosli says in this clip from The Call @ Hedgeye.
“These price increases are going to be a boost to sales because there really aren't any other retailers at these price points. So, it can be passed on.”
Biolsi specifically called out the rise in aluminum foil price from $1.25 to $1.75 in a recent channel check at one of the stores.
“This is inflation, not stagflation, for Dollar Tree, which is on our long list.”
Tune into The Call @ Hedgeye for hedge fund-quality research you won’t find anywhere else.
