Dollar tree (DLTR) shares fell Wednesday morning after the discount retailer reported worse-than-expected second-quarter earnings and revenue and cut its full-year profit forecast due to a “challenging macroeconomic environment.”
This comes days after the rival Dollar General (DG) highlighted weak results and guidelines.
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Dollar Tree Earnings
Dollar Tree reported Wednesday that its Q2 profit fell 26% to 67 cents per share, while revenue totaled $7.37 billion, up slightly from Q2 2023. Same-store sales rose 1.3%. Ahead of the earnings report, analysts had been eying Dollar Tree for Q2 EPS of $1.04 and revenue of $7.49 billion.
“We are encouraged by the continued progress we are making in the transformation underway at Dollar Tree and Family Dollar, despite the tremendous pressure of a challenging macroeconomic environment,” CEO Rick Dreiling said in Wednesday’s earnings report.
Amid the “challenging macro environment,” Dollar Tree on Wednesday lowered its 2024 profit forecast to $5.20-$5.60, down from its previous guidance of $6.50-$7.00. The retailer also lowered its revenue forecast, narrowing it to $30.6 billion-$30.9 billion. Earlier this year, Dollar Tree had forecast revenue of $31 billion-$32 billion for 2024.
Dollar Tree shares dive
Dollar Tree shares fell 12.2% to 71.66 during market action on Wednesday, hitting a new four-year low. DLTR shares fell 3.4% to 81.65 on Tuesday. Dollar Tree shares have posted six straight monthly declines and are down more than 40% through 2024.
Dollar General shares fell 2.2% on Thursday morning. DG shares fell 32% on Aug. 29 to their worst levels in nearly seven years, following the dollar store giant’s miss-and-cut report.
Dollar Tree stock has a composite rating of 21 out of a maximum of 99. The stock also has a low relative strength rating of 8 and earnings per share of 71.
Follow Kit Norton on X @KitNorton for more information.
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