Dollar Tree, Inc. (NASDAQ:DLTR) has reported third-quarter revenue and earnings that fell short of analysts’ expectations, sending its shares lower in Wednesday premarket trading.
The retailer, whose dollar stores include Dollar Tree and Family Dollar, reported a 5.4% rise in sales to $7.31 billion for the quarter ended October 28, 2023, at the lower end of its guidance and below the $7.4 billion penciled in by Wall Street analysts.
Diluted earnings per share (EPS) declined by 19% to $0.97, within its own guidance range of $0.94 to $1.04 but below the $1.01 expected by the market.
During the quarter, it opened 197 new stores and expanded its multi-price Plus offering to 870 additional Dollar Tree stores.
“Our third-quarter results were within our expectations thanks to continued execution across all aspects of our business transformation,” chairman and CEO Rick Dreiling said in a statement.
“In a challenging environment, our performance was among the best in retail as we continue to grow traffic, unit, and sales per square foot.”
The company has guided for 4Q sales of between $8.6 billion and $8.8 billion. Diluted EPS for the quarter is estimated to be in the range of $2.58 to $2.78.
The company’s shares fell 2.8% to $112.76 ahead of the opening bell.
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