These Analysts Slash Their Forecasts On Dollar Tree Following Weak Q2 Earnings

Dollar Tree, Inc DLTR reported worse-than-expected second-quarter 2024 earnings on Wednesday.

The discount variety stores chain reported an adjusted EPS of 67 cents, missing the consensus of $1.04, and down 26.4% year over year. The company reported sales of $7.38 billion, up marginally by 0.07%, missing the consensus of $7.5 billion.

Chief Financial Officer Jeff Davis added, “Our adjusted EPS of $0.67 was $0.38 below the midpoint of our previous outlook range. While the vast majority of this variance was attributable to an adjustment of our general liability accrual, a portion was attributable to a comp shortfall, which reflected the increasing effect of macro pressures on the purchasing behavior of Dollar Tree’s middle- and higher-income customers.”

For the third quarter of 2024, Dollar Tree forecasts sales of $7.4 billion—$7.6 billion, compared to the consensus of $7.59 billion, based on comparable store net sales growth in the low single digits for the enterprise and both the Dollar Tree and Family Dollar segments. Adjusted diluted EPS for the third quarter of 2024 is estimated to be $1.05-$1.15 compared to the consensus of $1.32.

Dollar Tree shares fell 22.2% to close at $63.56 on Wednesday.

These analysts made changes to their price targets on Dollar Tree following earnings announcement.

• BMO Capital analyst Kelly Bania downgraded the rating for Dollar Tree from Outperform to Market Perform and lowered the price target from $130 to $68.
• Piper Sandler analyst Peter Keith maintained the stock with a Neutral and lowered the price target from $112 to $67.

Considering buying DLTR stock? Here’s what analysts think: