Dollar Tree Misses Forecasts, Shares Drop

by Christopher Freeburn | August 16, 2012 11:47 am

Dollar Tree Misses Forecasts, Shares Drop

Dollar Tree (NASDAQ:DLTR[1]) announced on Thursday that it earned $119.2 million during the second quarter[2], up 26% from $94.9 million in the same period last year.

The discount retailer said sales for the quarter increased to $1.70 billion, up 10.5% from 2011. But that missed Wall Street forecasts of $1.77 billion, Reuters noted. EPS of 51 cents also fell short of the 52 cents a share that analysts had expected.

The company also issued weak guidance for Q3, with expected revenues of $1.71 billion to $1.75 billion and earnings per share of 47 cents to 51 cents shy of analyst expectations.

Shares of Dollar Tree fell more than 4% in Thursday morning trading.

The company said same-store sales, at outlets open at least 12 months, increased 4.5% over last year. Wall Street had estimated same-store sales gains of 2.9%.

Yesterday, Wal-Mart (NYSE:WMT[3]) reported second-quarter earnings that topped Wall Street forecasts[4], but missed estimates on revenue. Other discount retailers, including Target (NYSE:TGT[5]) and Kohl’s (NYSE:KSS[6]) beat analysts’ predictions for quarterly earnings.

Endnotes:
  1. DLTR: http://studio-5.financialcontent.com/investplace/quote?Symbol=DLTR
  2. during the second quarter: http://www.reuters.com/article/2012/08/16/us-dollartree-results-idUSBRE87F0K520120816
  3. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  4. that topped Wall Street forecasts: http://investorplace.com/2012/08/wal-mart-tops-profit-misses-revenue-estimates/
  5. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  6. KSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=KSS

Source URL: http://investorplace.com/2012/08/dollar-tree-misses-forecasts-shares-drop/
Short URL: http://invstplc.com/1fvRDUe