Dollar Tree Drops 19% Following Q2 Miss & Weak Outlook

Dollar Tree (NASDAQ:DLTR) saw its shares drop over 19% intra-day today following the release of disappointing fiscal Q2 2024 results and underwhelming future guidance.

The discount retailer reported earnings per share (EPS) of $0.67, falling well short of the $1.06 expected by Wall Street analysts. Revenue for the quarter reached $7.37 billion, missing the Street estimate of $7.5 billion.

Comparable sales across the enterprise grew by just 0.7%, a sharp decline from last year’s 6.9% growth, and below the 1.45% analysts had anticipated.

Family Dollar's comparable sales dipped 0.1%, narrowly better than the expected 0.21% drop, while Dollar Tree saw a 1.3% increase in comparable sales, significantly lower than last year’s 7.8% growth and below the forecasted 2.89%.

On a positive note, gross profit margin improved to 30%, slightly ahead of analysts' expectations of 29.9%, up from 29.2% a year ago.

Looking ahead, Dollar Tree expects full 2025-year EPS between $5.20 and $5.60, well below the Street estimate of $6.55 at the midpoint. Revenue is projected to range from $30.6 billion to $30.9 billion, also missing the forecasted $31.19 billion.