Proactive Investors - Dollar Tree, Inc. (NASDAQ:DLTR) shares slid 15% to $132.33 in early Thursday trading after the discount retailer reported first-quarter 2023 net income that fell to $299.0 million from $536.4 million during the same period last year, while its 1Q adjusted earnings per share (EPS) of $1.47 missed the FactSet consensus estimate of $1.52.
Dollar Tree’s revenue for the quarter, though, rose 6.1% to $7.32 billion, edging past expectations of $7.28 billion.
The company’s overall same-store sales for the quarter also increased 4.8%, which was stronger than the 3.6% FactSet consensus.
As well, Dollar Tree updated its guidance for the second quarter, stating it now expects 2Q 2023 EPS of $0.79 to $0.89, compared with expectations of $1.18, while also reducing its full-year EPS guidance range to $5.73 to $6.13 from $6.30 to $6.80.
“While we are seeing early results from our initiatives, we are not immune to the external pressures affecting all of retail, notably, the margin impact of elevated shrink and the product mix shift to consumables,” Dollar Tree CEO Rick Dreiling said in a statement.
The company also noted that legal costs from a rat infestation at a warehouse weighed on its results.
Shares of Dollar Tree have now fallen about 6% year to date.