Dollar Tree shares plummeted Wednesday after the bargain retailer reported worse-than-expected second-quarter earnings and revenue and cut its full-year profit outlook amid a "challenging macro environment."
That comes days after rival Dollar General dived on weak results and guidance.
Dollar Tree Earnings
Dollar Tree announced Wednesday that Q2 earnings dropped 26% to 67 cents per share while sales totaled $7.37 billion, up a fraction compared to Q2 2023. Same-store sales grew 1.3%. Prior to earnings, analyst consensus had Dollar Tree Q2 EPS of $1.04 and revenue coming in at $7.49 billion.
"We are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar, despite immense pressures from a challenging macro environment," Chief Executive Rick Dreiling said Wednesday in the earnings release.
Amid the "challenging macro environment," Dollar Tree on Wednesday cut its 2024 profit view to $5.20-$5.60, down from its previous $6.50-$7.00 expectation. The retailer also revised down and narrowed its revenue guidance to $30.6 billion-$30.9 billion. Earlier in the year Dollar Tree expected $31 billion-$32 billion in revenue for 2024.
Dollar Tree Stock Dives
Dollar Tree stock dropped 22.2% to 63.53 during market action on Wednesday, hitting a fresh four-year low. DLTR shares declined 3.4% to 81.65 on Tuesday. Dollar Tree stock has booked six consecutive monthly declines and was down more than 40% in 2024 heading into Wednesday trade.
Dollar General stock fell 3.3% Thursday. DG stock dived 32% on Aug. 29 to the worst levels in nearly seven years on the dollar store giant's miss-and-cut report.
Dollar Tree stock has a 21 Composite Rating out of a best-possible 99. Shares also have a lowly 8 Relative Strength Rating and a 71 EPS Rating.
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