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Dollar Tree profits drop 19 percent, disappointing Wall Street

Dollar Tree loses some green moving into the winter, missing targets in a "cautious" spending environment. Target also disappointed on Thursday, along with a number of bigger retailers this week.

By
Sonali Basak
Dollar Tree, selling for $1 or less, misses earnings estimates and profits are down 19 percent. (File/UPI/Roger L. Wollenberg)
Dollar Tree, selling for $1 or less, misses earnings estimates and profits are down 19 percent. (File/UPI/Roger L. Wollenberg) | License Photo

Nov. 21 (UPI) -- Dollar Tree faced a profit loss of 19 percent, and weaker earnings than Wall Street expected.

Profits fell to $125.4 million, or 58 cents a share, down from $155.4 million or 68 cents a share in the year-ago period.

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Revenue increased 9.5 percent to $1.88 billion for the retailer, which sells goods for $1 or less. But analysts still expected revenue to be higher, at $1.91 billion.

Regardless, Dollar Tree CEO Bob Sasser said in a statement that he was "pleased" with company performance "during a very cautious consumer environment." While overall retail sales were up for October, retailers faced consumers wary to spend with stagnant wages.

This comes after much bigger retailers -- Walmart, Best Buy and Target -- also saw earnings squeezed by sparse consumer spending. Though more expensive chains such as Macy's and its Bloomingdale's sister chain performed better than expected.

Dollar Tree shares declined more than 4 percent to $56.50 in trading by 2:15 pm in New York.

[MarketWatch]

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