Dollar Tree, Inc. (NASDAQ:DLTR) warned of "macro pressures" on the purchasing behaviour of its middle- and higher-income customers as it cut financial guidance for this year.
This followed a disappointing fiscal second quarter for the US discount retailer, where same-store sales growth slowed to 1.3% from 1.7% in the first quarter, below Wall Street estimates, with its Family Dollar brand seeing a 0.1% decline.
For the full year, the board trimmed the outlook to annual sales of $30.6-30.9 billion, compared with the previous of $31-32 billion
Adjusted earnings per share of $0.67 was $0.38 below the midpoint of previous guidance.
Chairman and CEO Rick Dreiling said the group was encouraged by progress in the transformation of Dollar Tree and Family Dollar, "despite immense pressures from a challenging macro environment".
Customers were "responding favorably" to initiatives like its expanded multi-price offering - where the chain shifted away from its traditional $1 price point to offer a wider range of products at higher price levels.
He said there had been a "meaningful sales lift" at the 1,600 Dollar Tree stores that have been converted to the multi-price format, meaning there are still thousands of stores to convert over several years.
Rival Dollar General last week said that its lower-income customers feel "financially constrained".