Dollar Tree Inc (NASDAQ:DLTR) saw its shares plunge in pre-market trade after its fourth quarter results failed to impress the market.
In a statement, the discount retailer said net income for the quarter to February 3 more than tripled to US$1.04bn or US$4.37 a share, from US$321.8mln or US$1.36 a share, in the same period a year ago, as the recent US tax reform included a US$562mln non-cash benefit.
READ: Dollar Tree's third quarter earnings and sales beat market expectations, edges up full year guidance
Excluding non-recurring items, adjusted earnings per share stood at US$1.89, which missed market expectations for US$1.90.
In the quarter, revenue rose 12.9% to US$6.36bn, but still fell short of Wall Street’s target of US$6.40bn.
Same-store sales rose 2.4%, while adjusted same-store sales grew by 2.5%, led by growth increases in average ticket and transaction count, but below market consensus of a 2.9% rise.
Dollar Tree is guiding revenue of US$5.53bn to US$5.63bn for the first quarter, smack in line with market consensus of US$5.60bn.
The retailer has also estimated same-store sales to rise in the low single-digit percentage range, against market expectations of a 2.7% growth.
Gary Philbin, president and chief executive officer said: "For the year, we opened 603 new stores, exceeded $22 billion in sales and improved our operating margin by 80 basis points.”
In pre-market trade, its shares dived 9.93% at US$104.36.