Dollar Tree gives quarterly outlook below Wall Street views
(Reuters) - Dollar Tree Inc (DLTR.O) forecast quarterly earnings and sales below analysts' expectations, a sign of increasing pressure on the core bargain-seeking shoppers who visit its stores to buy basic goods.
Shares of Dollar Tree, which sells items for $1 or less at its namesake chain and at a variety of prices at its smaller Deal$ chain, fell more than 6 percent to $46.75 in premarket trading on Thursday morning.
The retailer said it expected earnings of 47 cents to 51 cents a share on sales of $1.71 billion to $1.75 billion in its third quarter, which began on July 29. Analysts on average forecast earnings of 52 cents a share and sales of $1.77 billion.
Dollar Tree said it had earned $119.2 million, or 51 cents per share, in the fiscal second quarter, up from $94.9 million, or 39 cents per share, a year earlier. Analysts on average forecast 51 cents a share, according to Thomson Reuters I/B/E/S.
Sales rose 10.5 percent to $1.70 billion, while sales at stores open at least a year rose 4.5 percent, down from a 4.7 percent increase a year earlier.
Analysts had expected same-store sales to rise 2.9 percent.
(Reporting by Jessica Wohl in Chicago; Editing by Lisa Von Ahn)
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