dollar-tree-sales,-earnings-guidance-fall-short-of-expectations

Dollar Tree sales, earnings guidance fall short of expectations

Dollar Tree Inc.
DLTR,
1.06%

stock fell 5% in Thursday premarket trading after the discount retailer reported second quarter sales that fell short of expectations. Net income totaled $282.4 million, or $1.23 per share, up from $261.5 million, or $1.10 per share, last year. Sales of $6.34 billion were up from $6.28 billion in 2020. The FactSet consensus was for EPS of $1.01 and sales of $6.44 billion. Dollar Tree Plus, the multi-price merchandise that exceeds the usual $1 price point will expand to the 500-store target for fiscal 2021 and is expected to add 1,500 stores in fiscal 2022 with the goal of at least 5,000 by 2024. The company will also grow its combo stores that house both Family Dollar and Dollar Tree under one roof in 2022. For the third quarter, the company expects net sales in the range from $6.40 billion to $6.52 billion based on low-single-digit same-store sales growth. EPS is expected to be in the range of 88 cents and 98 cents. The FactSet consensus is for sales of $6.43 billion and EPS of $1.26. For the full year, net sales are expected to be in the range from $26.19 billion to $26.44 billion based on a low single-digit same-store sales increase, and the EPS outlook is for a range of $5.40 to $5.60. The FactSet consensus is for sales of $26.39 billion and EPS of $5.98. Dollar Tree stock has slipped 1.6% for the year to date while the S&P 500 index
SPX,
0.22%

has gained 19.7% for the period.