Dollar Tree’s Forecast Falls Short of Estimates on Rising Cost Pressures
- Retailer cites higher wages, repair costs, “elevated shrink”
- Comparable sales surge, easily topping analyst estimates
A Dollar Tree store in Beltsville, Maryland.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
Dollar Tree Inc.’s third-quarter earnings forecast fell short of analyst estimates as the company contends with challenges such as higher wages and a less profitable sales mix, one year after introducing a higher price point.
The discount retailer also cited headwinds from “elevated shrink,” a retail-industry term that includes losses from theft. Adjusted earnings in the current quarter will be no more than $1.04 a share, the company said Thursday. That was far behind the $1.29 average of analyst estimates compiled by Bloomberg.