Weak Sales Lead Dollar Tree to 19% Profit Loss

Dollar Tree Inc reported a 19 percent drop in quarterly profit due to weaker sales at stores open for more than a year, sending its shares down 5.3 percent in premarket trading.

Net income fell to $125.4 million, or 58 cents per share in the third quarter ended Nov. 2, from $155.4 million, or 68 cents per share a year ago.

The company said last year's earnings included a one-time gain of 17 cents per share related to the sale of its ownership interest in Ollie's Holdings Inc.

Net sales rose 9.5 percent to $1.88 billion, while comparable-store sales rose 3.1 percent in the quarter.

Analysts on average had expected comparable-store sales to increase 4.5 percent, according to Thomson Reuters I/B/E/S.