shares dollar tree The stock tumbled nearly 15% in early trading Thursday after the company missed Wall Street’s earnings expectations for the latest quarter and cut its full-year profit forecast.
This is what discount stores do first quarter Compared with Wall Street expectations, according to a Refinitiv survey of analysts:
- EPS: Adjusted to $1.47 vs. $1.52 expected
- income: $7.32 billion vs. $7.28 billion expected
Related investment news
The company reported net income of $299 million, or $1.35 a share, for the three-month period ended April 29, compared with $536.4 million, or $2.37 a share, a year earlier. On an adjusted basis, the company reported earnings of $1.47 per share, missing Wall Street expectations.
Sales rose to $7.32 billion from $6.9 billion a year ago.
Same-store sales rose 4.8%, compared with expectations for a 3.6% increase, according to Street Account estimates.
After a disappointing quarter, Dollar Tree lowered its full-year profit forecast to between $5.73 and $6.13 per share, from $6.30 to $6.80 per share. Analysts polled by Refinitiv had expected full-year earnings of $6.68 a share.
Rick Dreiling, Dollar Tree’s chief executive, said in a news release that the lower outlook was due to increased shrinkage, or items damaged, lost or stolen, and a shift in product mix toward consumables, which have lower margins. .
“While we are seeing early results from our initiatives, we are not immune to external pressures affecting all of retail,” Dreiling said.
“While we are maintaining our full-year 2023 sales outlook, we are revising our EPS outlook as we expect higher contraction and an unfavorable sales mix to persist through the remainder of the year. We still expect earnings to be more of a drag this year years because of the benefits of lower ocean freight rates.”
However, the company largely left its full-year sales forecast unchanged, expecting net sales to tighten in the $30.0 billion to $30.5 billion range. It forecast comparable store sales in the low to mid-single digits.
For the second quarter, the company expects second-quarter earnings per share of 79 cents to 89 cents, compared with a Refinitiv consensus estimate of $1.22.