Dollar Tree's Stock Tumbles After Profit, Sales Miss Expectations

Shares of Dollar Tree Inc. tumbled 7.3% in premarket trade Thursday, after the discount retailer missed fiscal-second quarter profit and sales expectations. For the quarter ended July 30, the company swung to earnings of $170.2 million, or 72 cents a share, from a loss of $98.0 million, or 46 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 73 cents. Revenue rose to $5.00 billion from $3.01 billion, boosted by sales from Family Dollar stores, but was below the FactSet consensus of $5.08 billion. Same-store sales rose 1.2% on a constant currency basis, and 1.1% when adjusted for currency fluctuations. The FactSet consensus was for a 2.4% increase. The company expects third-quarter EPS of 76 cents to 82 cents and revenue of $5.02 billion to $5.10 billion, compared with the FactSet consensus for EPS of 76 cents and revenue of $5.13 billion. The stock had soared 23% year to date through Wednesday, while the SPDR S&P Retail ETF had gained 5.5% and the S&P 500 had advanced 6.4%.