Jim Cramer Says Dollar Tree "Is Doing Its Best to Keep Prices Low"

Dollar Tree, Inc. (NASDAQ:DLTR) is one of the stocks Jim Cramer shed light on. Cramer called it a well-run company during the episode. He commented:

“First, there are the dollar stores. We all accept the cliche of the cash-strapped consumer, right? A strapped consumer often goes to dollar stores. There’s a perception that these stores have a ton of Chinese exposure, so their sales and earnings have been hurt by the tariffs. Both Dollar General and Dollar Tree are extremely well-run companies. They’ve spent a great deal of their conference calls talking about how they’ve mitigated much of the Chinese exposure, but they can’t get rid of it… There’s still too much of it. And the tariffs don’t just apply to China either… Dollar Tree mentions the tariffs as a cause of volatility, which, to me, means variable pricing. The company, like Dollar General, is doing its best to keep prices low, but the tariffs are still a factor.”

Dollar Tree, Inc. (NASDAQ:DLTR) sells everyday essentials, household items, toys, and seasonal products at low prices. The company focuses on providing affordable food, personal care, home goods, and holiday merchandise. Cramer discussed the company during the December 3 episode and stated:

“Second, there’s retail. In all my 40 years of following retail, I can’t recall a time when so many chains were doing so well that there is this much full-price merchandise for the holidays. Things just aren’t on sale. There’s no promotion. Every day, we get a new set of retailers doing amazingly well. Just today, Dollar Tree reported a really terrific quarter. Like Walmart’s starting to appeal to a higher-end demographic. Those who thought this chain would be hurt by food stamp cutbacks, they read the room totally wrong.”

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Disclosure: None. This article is originally published at Insider Monkey.