Tornado impact adds uncertainty to Dollar Tree objectives, says Oppenheimer

Oppenheimer analyst Rupesh Parikh notes that over the weekend, a Dollar Tree DC in Marietta, OK was heavily damaged by a tornado. Overall, the firm expects a material but largely transitory impact on FY24 results, but more limited headwinds in FY25. Near-term impacts include potential lost sales and higher transportation costs. In an already complex turnaround, Oppenheimer believes this unfortunate event adds increased uncertainty to existing market skepticism on management’s ability to deliver on longer-term objectives. The firm has a Perform rating on the shares.