Dollar Tree (NASDAQ:DLTR) reported softer-than-expected earnings for the third quarter, sending its shares nearly 3% lower in early Wednesday trade.
The company posted adjusted earnings per share of 97 cents for the third quarter, falling short of the $1.20 reported in the same period last year and below the estimated $1.01.
Net sales for the quarter were $7.31 billion, reflecting a 5.4% year-over-year increase, but slightly below the estimated $7.40 billion.
“Our third-quarter results were within our expectations thanks to continued execution across all aspects of our business transformation,” said Rick Dreiling, Chairman and Chief Executive Officer.
“In a challenging environment, our performance was among the best in retail as we continue to grow traffic, unit, and sales per square foot.”
Dollar Tree's net sales were $4.00 billion, up 6.6% year-over-year, while Family Dollar's net sales were $3.31 billion, showing a 3.9% YoY increase.
The gross profit margin was 29.7%, down from 29.9% last year and slightly below the estimated 29.8%.
Looking ahead, Dollar Tree expects FY2024 EPS in the range of $5.81 to $6.01, compared to the consensus estimate of $5.97. Revenue is seen coming in between $30.5 billion and $30.7 billion, while analysts were looking for $30.82 billion.
For this quarter, DLTR sees adjusted EPS at $2.68 (up or down 10 cents) on revenue of $8.7 billion (up or down $100 million). The consensus was looking for EPS of $2.57 on revenue of $8.73 billion.