Disappointing Q3 Profit Sends Dollar Tree 17% Lower Tuesday Morning

Shares of Dollar Tree (NASDAQ: DLTR), a leading operator of discount stores under its namesake and Family Dollar brands, plunged as much as 17% lower during Tuesday morning trading after the company released disappointing third-quarter results.

Dollar Tree's third-quarter sales increased 3.7% to $5.75 billion, slightly topping analysts' estimates of $5.74 billion. Earnings per share checked in at $1.08, at the low end of management's guidance range between $1.07 and $1.16 per share, but below analysts' estimates of $1.13 per share. Same-store sales continued a recent string of gains with a 2.5% increase, bolstered by rising average ticket and transaction volume, but comps were still short of the 2.6% growth analysts projected.

Said Gary Philbin, president and CEO, in a press release: "Our store optimization efforts and sales driving initiatives are working. The teams have completed more than 1,150 Family Dollar H2 renovations, nearly 200 Dollar Tree rebanners, more than 1,000 Dollar Tree Snack Zones and launched our Dollar TreePlus! test already this year."

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Source Fool.com