Shares of Dollar Tree fell more than 22% on Wednesday after the discounter cut its full-year outlook, citing increasing pressures on middle-income and higher-income customers.
The retailer said it now expects its full-year consolidated net sales outlook to range between $30.6 billion and $30.9 billion. It expects adjusted earnings per share to range from $5.20 to $5.60. That compares with previous guidance of $31 billion to $32 billion in net sales and $6.50 to $7 for adjusted earnings per share.
In a news release, Chief Financial Officer Jeff Davis said the company cut the forecast to reflect softer sales and costs associated with converting 99 Cents Only stores. The company also said it has had higher expenses to reimburse, settle and litigate claims related to customer accidents and other incidents at stores.
Here’s how Dollar Tree did in its fiscal second quarter ended Aug. 3 compared with Wall Street expectations, according to analysts surveyed by LSEG:
Earnings per share: 97…
2024-09-04 15:03:59
Article from www.cnbc.com