Gary Philbin, CEO, Dollar Tree

Scott Mlyn | CNBC

Dollar Tree swung to a quarterly loss on Wednesday after the retailer took an over $1 billion goodwill impairment charge, as it plans to shut nearly 1,000 stores.

Shares of the Chesapeake, Virginia-based firm fell more than 8% in premarket trading.

In November, the discount retailer had announced that it would review its Family Dollar business, including potentially shutting down underperforming stores to return to growth.

The company said it also took a $594.4 million charge for a portfolio optimization review and $950 million in other asset impairment charges.

Dollar Tree reported a net loss of $1.71 billion, or $7.85 per share in the fourth quarter, compared with a year-ago profit of $452.2 million, or $2.04 per share.

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