Dollar Tree (NASDAQ:DLTR) stock dipped Thursday after Dollar Tree’s third-quarter earnings guidance came in well below expectations. The company said it expected between 94 cents and $1.04 in earnings per share for the current quarter, while analysts were looking for $1.27 per share, according to Refinitiv. Dollar Tree’s second-quarter results did top estimates on the top and bottom lines.
Same-Store Sales: Dollar Tree +7.8%; Family Dollar +5.8%; Enterprise +6.9%. Comparable Transaction Count: Dollar Tree +9.6%; Family Dollar +3.4%Diluted Earnings per Share (EPS) came in at $0.91. Increasing Fiscal 2023 Sales Outlook Range to $30.6 Billion to $30.9 Billion
Said CEO Rick Drieling, “At our June Investor Conference we shared the details of our strategy to transform the company and unlock the true value of our business, and our second quarter results show us making solid progress against these objectives. Both the Dollar Tree and Family Dollar segments reported strong same-store sales trends, driven by increased traffic and accelerated market share gains.”
“We are delivering on our strategy through the dedication of our 200,000+ associates who are focused on providing an exceptional experience for our customers.”
Concurred CFO Jeff Davis, “In the second quarter, we continued to generate strong top-line results across both segments. While factors like sales mix and elevated shrink continue to pressure margins, we generated a year-over-year increase in gross profit dollars. We are pleased with the progress of our transformation to date and remain confident in our ability to deliver our growth objective of $10 or more of diluted EPS by 2026,”
DLTR shares plunged $12.62, or 8.9%, to $129.60.
