Here is the share price performance of the companies I track continuously. I focus on the period from 01.12.2024 - 15.01.2025

• 3i Group $III (-1%) -0,64%
• TJX Companies $TJX (-1,44%) -5,61%
• Dollar Tree $DLTR (-1,36%) -3,39%
• Dollar General $DG (+1,92%) -11,85%
• Five Below $FIVE (-2,21%) -4,68%
• Dollarama $DOL (-0,51%) -8,75%
• Pepco Group $PCO (+0,97%) -4,43%

My portfolio currently contains shares in 3iGroup.

Action published its latest figures in November, which underline its strong growth in Europe. Action has achieved achieved net sales of 10.733 billion eurosaccompanied by an operating EBITDA of 1.532 billion euros - an impressive increase of 26 %. increase of 26 % compared to the previous year. What particularly impresses me is the like-for-like growth of 10.1%, driven entirely by volume increases. In a rising cost of living environment, Action shows how effective a strategy that passes on discounts directly to customers can be. Despite industry-wide price increases, Action remains a model of efficiency. In the first nine reporting periods of the year, 189 new stores were opened and 350 new stores were planned for the full year 2024. I assume that this target has been achieved. I find the rapid expansion in Italy, Portugal, Slovakia and Spain particularly exciting.

Basically, it can be said that US stocks (e.g. Dollar Tree and Dollar General) recorded high losses in 2024. Among other things, this was due to a lack of efficiency, but also to the threat of Trump's punitive tariffs on goods from China. Therefore, another exciting candidate for me is Dollarama, as they operate exclusively in Canada and Latin America.

Earnings next week 🗓️

$ZS (-3,6%)

$CRM (-2,41%)

$OKTA (-1,66%)

$LULU (-1,51%)

$MRVL (-4,06%)

$CHWY (-4,38%)

$PATH (-4,38%)

$ULTA (-1,47%)

$S (-2,3%)

$FL (-2,24%)

$DOCU (-1,94%)

$DLTR (-1,36%)

$GTLB (-5,02%)

$HPE (-2,32%)

$IOT

$DG (+1,92%)

$CRDO

$PSTG (-2,99%)

$VEEV (-0,9%)

$AEO

$BOX (-3,12%)

$FIVE (-2,21%)

$TD (-0,23%)

$CURV

$BNS (-0,97%)

$SNPS (-3,7%)

$RY (-0,25%)

$CNM

$ASAN (-5,26%)

$WOOF (-6,73%)

$BBW (-3,68%)

$DCI

$CHPT (-3,95%)

$BASE (-1,72%)

$VSCO (-4,47%)

$CSIQ (-0,28%)

$THO (-1,13%)

$GWRE (-2,53%)

$SIG (-2,1%)

$CBRL (-1,97%)

$COO

$CPB (+3,22%)

$BMO (-0,06%)

$DSGT

$DOO (-2,25%)

$CAL

$SMAR

$REX (-0,76%)

$PVH (+0,47%)

$PEAK (+0,27%)

Non-food discounters

I am continuing to look at the non-food discounter sector and have carried out a small financial analysis in order to better assess the market situation.

Dollar General $DG (+1,92%) and Dollar Tree $DLTR (-1,36%) are clearly the heavyweights in the US market. Both have sales of over 30 billion dollars and are positive. However, compared to their competitors Dollarama $DOL (-0,51%) only have a tiny profit margin.

The share prices of US companies have also fallen sharply in recent months. The US market is struggling with problems. Inflation and high costs are leading to smaller profit margins and poor future forecasts. Another major issue is the threat of tariffs on China, which is depressing share prices.

Dollarama, on the other hand, is a Canadian company and has at least nothing to do with China tariffs. The majority of the stores are located in Canada and South America, here under the Dollercity brand. The profit margins are really impressive for a "1 dollar store" and that is why the share has performed so extremely in recent months. Over the year, the share price has risen by 48%.

In my opinion, there is potential for further growth as the company continues to expand, especially in South America. South America is an exciting market for me anyway.

🧵 3

Of course, there is also a large network of non-food discount stores in the USA. With Dollar Tree ($DLTR (-1,36%)), Dollar General ($DG (+1,92%)) and Five Below ($FIVE (-2,21%)), there are at least three listed companies. I have also included the off-price retailer TJX Companies, better known here as TK Maxx, on the list.

In FY2023, the leading non-food discounters Dollar Tree, Dollar General, Five Below and TJX Companies posted respectable sales and solid EBITDA performance, indicating robust demand and their efficiency strategies.

Dollar Tree generated sales of USD 30.6 billion and EBITDA of USD 3.004 billion. The discount giant was able to increase its performance through a broad product range and a successful store network.

Dollar General achieved the highest sales in this group with USD 37.8 billion and an EBITDA of USD 4 billion. The company benefited from its extensive presence and a strong price-performance strategy that appeals to price-conscious customers.

Five Below achieved sales of USD 3.1 billion and EBITDA of USD 516 million. Focusing on young customer groups and inexpensive trend articles, the company recorded further growth, albeit at a lower sales level than its established competitors.

TJX Companies, the parent company of TK Maxx, reported sales of USD 49.9 billion and the highest EBITDA in the Group at USD 6.1 billion. With off-price offers and an established brand, TJX was able to further expand its leading position in the market for affordable fashion and household goods.

You can invest directly in all companies. It is interesting to note that the asset managers Black Rock and Vanguard are invested in all US companies, in some cases with considerable stakes.

Part 1 https://getqu.in/AWbuxi/

2nd part https://getqu.in/4cohv8/

What we can expect next week:

Monday, June 3:

• S&P Flash U.S. Manufacturing PMI (May)
• Construction Spending (April)
• ISM Manufacturing (May)
• Quarterly reports from GitLab ($GTLB (-5,02%) ) and Science Applications International Corp. ($SAIC (-4,35%) )

Tuesday, June 4:

• Factory orders (April)
• Job offers (April)
• Quarterly reports from CrowdStrike Holdings ($CRWD (-6,19%) ), Hewlett Packard Enterprise ($HPE (-2,32%) ) and Bath & Body Works ($BBWI (-4,2%) )

Wednesday, June 5:

• S&P Flash U.S. Services PMI (May)
• ADP Private Sector Employment (May)
• ISM Services (May)
• Trade deficit USA (April)
• Quarterly reports from Lululemon Athletica ($LULU (-1,51%) ), Dollar Tree ($DLTR (-1,36%) ), Campbell Soup ($CPB (+3,22%) ) and Five Below ($FIVE (-2,21%) )

Thursday, June 6:

• Initial claims for unemployment benefit (week ending June 1)
• Quarterly reports from Samsara ($IOT ), Docusign ($DOCU (-1,94%) ), Nio ($NIO (+2,04%) ), J.M. Smucker ($SJM (+3,05%) ) and Vail Resorts ($MTN (+0,33%) )

Friday, June 7:

• Labor Market Report USA (May)
• Consumer Credit (May)
• Wholesale inventories (April)