Dollar Tree, Inc. (NASDAQ:DLTR) has already guided investors to expect a big year-over-year decline in earnings when it reports back for the second quarter before the opening bell on Thursday, August 24.
However, analysts expect the discount retailer’s performance for the three months to July 29, 2023, to be at the top end of its guidance.
While Dollar Tree has forecast 2Q revenue of between $7 billion and $7.2 billion for the quarter, the consensus estimate of the Street is $7.22 billion, up 6.8% from the same quarter last year.
In updated guidance following the release of its 1Q results in May, the retailer put 2Q diluted earnings per share at between $0.79 and $0.89. Analysts’ consensus is towards the upper end of that guidance at $0.88, which would still represent a year-over-year decline of 45%.
The company attributed a weak first quarter to the external pressures affecting all of retail, notably, the margin impact of elevated shrink and the product mix shift to consumables.
Ahead of its results, Dollar Tree’s shares were up 0.2% at $140.79 in early Wednesday afternoon trade.
Contact the author at stephen.gunnion@proactiveinvestors.com