Dollar Tree Inc. shares slumped 3.3% in premarket trade Thursday, after the discount retailer reported fiscal first-quarter profit and sales that missed expectations, and provided a downbeat outlook for the current quarter. For the quarter ended May 2, net earnings fell to $69.5 million, or 34 cents a share, from $138.3 million, or 67 cents a share, in the same period a year ago. Excluding non-recurring items, such as acquisition-related costs, adjusted earnings per share came in at 71 cents, below the FactSet consensus of 75 cents. Sales rose to $2.18 billion from $2 billion, amid a 3.4% increase in same-store sales, but fell short of FactSet consensus estimates of $2.2 billion and 4.3% growth, respectively. For the second quarter, the company expects sales of $2.17 billion to $2.23 billion and adjusted EPS of 63 cents to 68 cents, compared with FactSet estimates of $2.23 billion and 70 cents, respectively. Dollar Tree said it plans to divest 330 Family Dollar stores as part of an agreement with the Federal Trade Commission as it works to complete its acquisition of its smaller rival. Dollar Tree's stock has run up 8.4% year to date through Wednesday, while the S&P 500 has gained 3.3%.
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