Dollar Tree grapples with lower sales, Family Dollar costs
Revenue missed Wall Street's projections of $6.39B
Dollar Tree Inc. reported weaker-than-expected sales for its latest quarter and recorded another impairment charge tied to its Family Dollar business, which has struggled.
The discount retail chain reported fourth-quarter revenue rose 1.8 percent to $6.32 billion, less than the $6.39 billion consensus estimate compiled by FactSet.
Profit rose to $123 million, or 52 cents a share, from a loss of $2.31 billion, or $9.69 a share, the year earlier, when the company booked a $2.73 billion charge against the value of the Family Dollar unit.
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Dollar Tree said it recorded a $313 million non-cash goodwill impairment charge in the latest quarter against the value of the Family Dollar unit.
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The company said it earned an adjusted profit of $1.79 a share, 3 cents higher than forecasts from analysts.
Enterprise same-store sales ticked up 0.4 percent in the quarter.
Shares of Chesapeake, Va.-based Dollar Tree fell 3.9 percent in premarket trading.