Why Discount Store Chain Dollar Tree Shares Are Plunging Today
Portfolio Pulse from Shivani Kumaresan
Dollar Tree Inc (NASDAQ:DLTR) shares dropped after reporting Q4 FY23 sales of $8.63 billion, missing estimates of $8.67 billion. Same-store sales varied across segments, with Dollar Tree up 6.3%, Family Dollar down 1.2%, and Enterprise up 3%. Gross profit rose 16.2% Y/Y to $2.77 billion, but operating loss was $(1.89) billion compared to prior operating income of $618.1 million. Adjusted EPS of $2.55 missed estimates of $2.65. The company forecasts FY24 net sales of $31-$32 billion and adjusted EPS of $6.70-$7.30, with Q1 expectations below analyst estimates.
March 13, 2024 | 12:17 pm
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Dollar Tree Inc reported lower than expected Q4 FY23 sales and a significant operating loss, leading to a 7.48% drop in premarket trading. The company's FY24 outlook is also below analyst estimates.
Dollar Tree's share price is directly impacted by the reported lower than expected Q4 sales and a significant operating loss. The negative outlook for FY24 further contributes to the bearish sentiment, leading to a sharp decline in premarket trading.
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