Dollar Tree releases Q2 forecast showing impacts from changing tariffs
Discount store operator Dollar Tree forecast its second-quarter adjusted profit to be down as much as 50% from a year ago, accounting for volatility caused due to changing tariffs. Shares of the company were down about 3% in premarket trading. The Trump administration’s rollercoaster tariff swings have thrown businesses into turmoil and unsettled consumers worldwide, who now brace for price hikes on everything from groceries to sneakers. Dollar Tree said on Wednesday that its second-quarter profit from continuing operations, which exclude its Family Dollar business, could be down as much as 45% to 50% year-over-year before re-accelerating in the second half of the year. In March, the company said it would sell its less-profitable Family Dollar banner for $1 billion to a group of private equity investors. Dollar Tree maintained its annual comparable store sales forecast, a day after rival Dollar General raised its full-year targets after beating quarterly estimates on resilient demand. However, Dollar Tree raised its annual profit forecast, benefiting from lower freight costs and resilient demand for affordable essentials. It expects fiscal 2025 adjusted earnings per share to be in the range of $5.15 to $5.65, compared with its prior forecast of $5.00 to $5.50. However, Dollar Tree reiterated that the company’s full-year earnings per share will be hurt by 30 cents to 35 cents related to the Family Dollar sale, with that impact concentrated in the first two quarters of the fiscal year. The company posted first-quarter revenue of $4.64 billion, compared with analysts’ estimates of $4.54 billion, as per data compiled by LSEG. Its adjusted profit of $1.26 per share topped estimates of $1.20. —Anuja Bharat Mistry, Reuters
Discount store operator Dollar Tree forecast its second-quarter adjusted profit to be down as much as 50% from a year ago, accounting for volatility caused due to changing tariffs.
Shares of the company were down about 3% in premarket trading.
The Trump administration’s rollercoaster tariff swings have thrown businesses into turmoil and unsettled consumers worldwide, who now brace for price hikes on everything from groceries to sneakers.
Dollar Tree said on Wednesday that its second-quarter profit from continuing operations, which exclude its Family Dollar business, could be down as much as 45% to 50% year-over-year before re-accelerating in the second half of the year.
In March, the company said it would sell its less-profitable Family Dollar banner for $1 billion to a group of private equity investors.
Dollar Tree maintained its annual comparable store sales forecast, a day after rival Dollar General raised its full-year targets after beating quarterly estimates on resilient demand.
However, Dollar Tree raised its annual profit forecast, benefiting from lower freight costs and resilient demand for affordable essentials.
It expects fiscal 2025 adjusted earnings per share to be in the range of $5.15 to $5.65, compared with its prior forecast of $5.00 to $5.50.
However, Dollar Tree reiterated that the company’s full-year earnings per share will be hurt by 30 cents to 35 cents related to the Family Dollar sale, with that impact concentrated in the first two quarters of the fiscal year.
The company posted first-quarter revenue of $4.64 billion, compared with analysts’ estimates of $4.54 billion, as per data compiled by LSEG.
Its adjusted profit of $1.26 per share topped estimates of $1.20.
—Anuja Bharat Mistry, Reuters
