THE STOCK'S AT $182.
>>> LOOK AT DOLLAR TREE.
DISCOUNT STORE GUYS RELEASED
THEIR EARNINGS REPORT THIS
MORNING.
INCOME UP FROM LAST YEAR, BUT
THEIR FORECAST IS LOOKING A
LITTLE GRAY.
GARY PHILBIN IS DOLLAR TREE'S
CEO AND JOINS US NOW.
I WANT TO TALK CHINA TARIFFS
BECAUSE ACCORDING TO CREDIT
SUISSE, 40% TO 42% OF YOUR
MERCHANDISE COMES FROM CHINA.
WITH THESE TARIFFS BEING
IMPOSED, YOU'VE GOT TO BE
WORRIED, RIGHT?
>> THANK YOU, STUART.
THANK YOU FOR HAVING ME ON
TODAY.
IT'S A GREAT DAY AT DOLLAR TREE
AND OUR FAMILY DOLLAR BANNERS.
WE DID ANNOUNCE TOP LINE REVENUE
BEAT, SAME STORE SALES BEAT, AND
EPS IS AT THE HIGH END BUT THE
TARIFF PIECE OBVIOUSLY HAS OUR
FOCUS.
WE IMPORT ABOUT 40% AT DOLLAR
TREE.
ABOUT HALF OF THAT AT FAMILY
DOLLAR.
LET ME GIVE A LITTLE CREDIT TO
OUR MERCHANTS THROUGH OUR FIRST
LISTS OF ONE, TWO AND THREE.
WE HAVE OVERCOME THE TARIFF
IMPACT SO FAR.
I THINK AS WE TALK ABOUT
TARIFFS, THE QUESTION IS DOES
LIST FOUR COME INTO PLAY OR NOT.
STUART: GOING FORWARD, WE HAVE
THE POSSIBILITY OF 25% TARIFFS
BEING ADDED ON TO ANOTHER, WHAT,
$350 BILLION WORTH OF CHINESE
GOODS COMING IN HERE.
THAT'S IN THE FUTURE.
ALREADY TODAY, AT THE PORT OF
LONG BEACH, CALIFORNIA, THEY ARE
IMPOSING THOSE 25% TARIFFS ON
STUFF COMING IN FROM CHINA.
ARE YOU GOING TO EAT ALL OF THAT
INCREASE OR ARE YOU GOING TO
PASS IT ALONG TO CONSUMERS?
>> KEEP IN MIND, FOR DOLLAR
TREE, EVERYTHING'S $1.
IT'S NEVER ABOUT RAISING OUR
RETAIL.
IT'S ABOUT CHANGING PRODUCT IF
WE HAVE TO.
OVER THE YEARS, WE HAVE A
HERITAGE OF DOING THAT.
AT FAMILY DOLLAR WE OBVIOUSLY
HAVE MULTI PRICE POINTS.
STUART: IF EVERYTHING IS $1, AND
THE PRICE TO YOU GOES UP, YOU
JUST NOT SELL IT IF YOU CAN'T
SELL IT FOR $1?
>> THAT'S A LITTLE BIT OF OUR
HISTORY.
WE HAVE ALWAYS CHANGED ITEMS.
BUT WITH OUR CURRENT TARIFFS, WE
HAVE MOVED SOME PRODUCT OUT OF
CHINA.
YOU CAN'T MOVE SUPPLY CHAINS
EASILY.
WE RE-INSPECT THE PRODUCT SO WE
CAN LAND IT MORE CHEAPLY INTO
CONTAINERS SO IT'S AN IMPACT ON
US BUT IT'S SOMETHING OUR
MERCHANTS ARE WELL-EQUIPPED TO
TAKE A LOOK AND SAY HOW DO WE
FIND ITEMS OF GREAT VALUE AND
CONTINUE TO BRING IT INTO THE
U.S.
STUART: I BELIEVE YOU HAVE
ALREADY CLOSED 140 STORES, AND
ANOTHER 150 MAY CLOSE BY THE END
OF JULY.
WHY ARE YOU DOING THAT?
>> LET ME PUT IT INTO CONTEXT.
WHAT WE ARE CLOSING ARE THOSE
STORES, OUR FAMILY DOLLAR
BANNERS.
WHEN WE BOUGHT THE CHAIN IN
2015, WE REALLY HAVEN'T CLOSED
ANY STORES EXCEPT IN NORMAL
COURSE.
WE ARE GOING TO OPEN UP 500
STORES THIS YEAR BETWEEN FAMILY
DOLLAR AND DOLLAR TREE.
THAT'S A SMALL CHAIN FOR ANYONE
ELSE.
THE STORES WE ARE CLOSING ARE
USUALLY TOO OLD OR THE TOWN THEY
ARE IN HAS CHANGED AND RETAIL'S
ON THE OTHER SIDE.
WE ARE A GROWTH COMPANY BUT THIS
DOES HARVEST SOME OF OUR LOWER
PERFORMING STORES.
STUART: I ALWAYS THINK OF YOU AS
A BRICKS AND MORTAR OPERATION.
I DON'T GO TO DOLLAR TREE OR
FAMILY DOLLAR, I DON'T GO ONLINE
TO GET SOMETHING FROM YOUR
STORES.
I GO TO THE STORE.
SO YOU'RE NOT PART OF THE RETAIL
SHRINKAGE, ARE YOU?
>> I THINK YOU ARE EXACTLY
RIGHT.
PEOPLE COME TO OUR STORE BECAUSE
THEY WANT TO SEE WHAT'S NEW.
FAMILY DOLLAR, OFTENTIMES WE
SERVE A CUSTOMER THAT MAY NOT
KNOW SHE HAS $10 UNTIL THE END
OF THE WEEK.
SO OUR STORES ARE ABOUT COME IN,
SEE THE WOW FACTOR AT BOTH
DOLLAR TREE AND FAMILY DOLLAR,
AND WE DELIVER ON THE BASICS.
WE ARE BRICK AND MORTAR.
DISRUPTION IN RETAIL TENDS TO
HELP US.
STUART: GARY, LOOK, WE REALLY
WANT TO THANK YOU FOR COMING ON
THE SHOW TODAY.
GREAT REPORT.
YOUR STOCK'S DOING REALLY,