Dollar Tree 2Q Profit Falls, Full-Year Outlook Cut
Chesapeake, Va., Dollar Tree Stores Inc. saw an 8% decrease in its second-quarter profit. The company sited declining store traffic and an increase in merchandise costs as two main reasons for the fall in profit. Dollar Tree’s income for the quarter was $27.3 million, or 25? per share. Last year, income was $29.6 million, or 26? per share. Because of the decrease, Dollar Tree lowered its expectations for the year.
Net sales for the company were $769 million, up 9% from last year’s $704.2 million. Sales also were above analysts’ predictions of $764.1 million. Same-store sales decreased 1.5%. President and chief executive Bob Sasser said, “While we achieved sales within our most recent guidance, it is evident that our customers continue to feel the strain of rising fuel costs, and they are responding with fewer shopping trips.”