Dollar Tree profit up but forecast disappoints
(Reuters) - Dollar Tree Inc's (DLTR.O) posted a higher quarterly profit on Thursday as shoppers visited its small stores to buy low-priced food and basic household goods, but its profit forecast for the current quarter missed Wall Street expectations and shares were down nearly 5 percent.
Dollar Tree sells items for $1 or less at its namesake chain and at a variety of prices at its smaller Deal$ chain.
For the first quarter ended April 28, it earned $116.1 million, or $1.00 per share, compared with a profit of $101 million, or 82 cents per share, a year earlier, beating Wall Street estimates by 2 cents, according to Thomson Reuters I/B/E/S.
Sales at stores open at least a year rose 5.6 percent, while overall net sales rose 11.5 percent to $1.72 billion.
But Dollar Tree forecast that same-store sales would rise by a low-to-mid-single-digit percentage and for profit per share between 87 cents and 93 cents, below the 95 cent profit analysts were projecting.
Dollar Tree competes with a variety of chains, including Dollar General Corp (DG.N) and Family Dollar Stores Inc (FDO.N).
Its shares were down $4.80 to $96.50 in premarket trading.