Dollar Tree's Sales Rise Less Than Expected

Industries Reuters

Dollar Tree, the biggest U.S. discount chain, reported lower-than-estimated quarterly sales, hurt by a strong dollar and challenging economic conditions, sending shares down 6 percent in premarket trading on Tuesday.

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Sales at established Dollar Tree stores rose 1.3 percent, coming in below the 2.1 percent rise expected by analysts polled by research firm Consensus Metrix.

Excluding the impact of Canadian currency fluctuations, sales at established stores rose 1.7 percent.

The company's net income was $229 million, or 97 cents per share, in the fourth quarter ended Jan. 30, compared with $206.6 million, or $1 per share, a year earlier.

Excluding items, Dollar Tree earned $1.01 per share.

Net sales rose to $5.37 billion from $2.48 billion, boosted by its acquisition of Family Dollar Stores last year, but missed the $5.41 billion analysts had expected, according to Thomson Reuters I/B/E/S.

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(Reporting by Sruthi Ramakrishnan and Yashaswini Swamynathan in Bengaluru; Editing by Shounak Dasgupta)