Dollar Tree Inc (NASDAQ: DLTR) said on Thursday its sales missed Wall Street estimates in the fiscal second quarter. Shares of the company tanked about 10% this morning on weaker-than-expected guidance for earnings.
Financial performance
Dollar Tree said its net income in the second quarter printed at $282.4 million that translates to $1.23 per share. In the comparable quarter of last year, its net income was capped at $261.5 million or $1.10 per share.
The discount store company generated $6.34 billion of sales in the recent quarter versus the year-ago figure of $6.28 billion, as per the earnings press release. According to FactSet, experts had forecast $1.01 of EPS on $6.44 billion in sales.
Expansion plan
Dollar Tree Plus is set to open 500 new stores in fiscal 2021 and 1,500 next year. The multi-price merchandise wants to operate a network of at least 5,000 stores by 2024. New combo stores housing both Dollar Tree and Family Dollar will also be opened in 2022.
In related news, peer Dollar General also reported its earnings report for the fiscal second quarter on Thursday.
Guidance for the future
For fiscal Q3, Dollar Tree expects up to 98 cents of EPS on $6.40 billion to $6.52 billion in net sales. Comparable sales are likely to grow by less than 5.0%. In comparison, analysts are calling for $1.26 of EPS on $6.43 billion in sales.
For the full year, the American chain of discount variety stores forecasts up to $5.60 of EPS on $26.19 billion to $26.44 billion in net sales. Comparable sales growth is expected to keep under 5.0% this year. FactSet consensus for its full-year EPS and revenue stands at $5.98 and $26.39 billion, respectively.
The earnings report comes a day after Williams-Sonoma posted market-beating results for its latest quarter.
The post Here’s why Dollar Tree stock is down about 10% on Thursday morning appeared first on Invezz.
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