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Dollar Tree, Inc. (DLTR) experienced an 8% stock dip on September 6, 2023, despite reporting strong Q2 results. The decline followed weaker-than-expected third-quarter earnings guidance and profit-taking, with analysts showing concerns over margin pressures and tariffs ahead of the holiday season.
In Q2, Dollar Tree reported earnings of $0.77 per share, exceeding estimates of $0.38 by 102%, with sales reaching $4.56 billion, above expectations of $4.45 billion. The company opened 106 new stores and converted 585 locations to a multi-price format. For the full year, it raised revenue guidance to $19.3-$19.5 billion from $18.5-$19.1 billion, but Q3 EPS guidance fell short of expectations at $1.12, compared to Wall Street’s $1.33.
Following the dip, DLTR trades around $102 a share at a 20.3X forward earnings multiple, slightly below the S&P 500 average. Year-to-date, the stock is still up over 35%, having reached a 52-week high of $118 in August.
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