Dollar Tree Inc missed analysts' estimates for quarterly same-store sales on Thursday, hit by a surprise drop in sales at its Family Dollar stores.
The the discount store operator also cut its full-year sales forecast to a range of $22.72 billion to $22.83 billion from $22.75 billion to $22.97 billion.
Dollar stores have taken a hit as shoppers spend more on premium products from retailers like Target Corp and Trader Joe's, as a strong job market and lower taxes put more money in their hands.
The company has also been struggling to turn around its Family Dollar business since its acquisition in 2015.
The Results
Same-store sales at Family Dollar reported a surprise fall of 0.4%, while its Dollar Tree stores showed a 2.3% rise. Analysts on average had expected same-store sales to rise 0.07% and 2.53% respectively.
Net income rose to $281.8 million (€247.4 million), or $1.18 per share, in the third quarter ended 3 November, from $239.9 million (€210.7 million), or $1.01 per share, a year earlier.
Excluding items, Dollar Tree earned $1.18 per share, beating Wall Street estimates of $1.14 per share.
Net sales rose 4.2% to $5.54 billion (€4.86 billion), short of estimates of $5.55 billion (€4.87 billion).
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
