Dollar Tree (NASDAQ:DLTR) shares tumbled in pre-market trading Wednesday after the company unveiled its fiscal Q4 results.
DLTR was down 14% in pre-market trade.
The discount store operator posted Q4 earnings per share (EPS) of $2.55, falling short of the $2.66 anticipated by analysts. Revenue for the quarter was also slightly below expectations at $8.64 billion, against a forecasted $8.66 billion.
Dollar Tree reported a gross profit margin of 32.1%, an improvement from the 30.9% recorded year-over-year, and in line with consensus estimates.
Looking ahead to fiscal year 2024, Dollar Tree expects diluted EPS in the range of $6.70 to $7.30, against an analyst estimate of $7.04.
It has set its net sales outlook to range between $31.0 billion and $32.0 billion, which compares to an estimated $31.65 billion.
Moreover, the company has announced its decision to close 970 Family Dollar stores, as part of its strategy to revive its deteriorating business segment.
“We finished the year strong, with fourth-quarter results reflecting positive traffic trends, market share gains, and adjusted margin improvement across both segments,” said Rick Dreiling, Chairman, and Chief Executive Officer of Dollar Tree.
“As we look forward in 2024, we are accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.”