Discount retailer Dollar Tree (NASDAQ:DLTR) has delivered a better-than-expected set of second-quarter numbers, with revenue soaring 8.2% year-over-year to $7.32 billion. Additionally, at $0.91, the company’s EPS landed ahead of estimates by $0.04. However, shares of the company are trending nearly 9% lower at the time of writing today after it tightened its bottom line expectations.
During the quarter, higher traffic and gains in market share helped the company improve its same-store sales by 7.8%. Impressively, same-store sales in the Family dollar segment improved by 380 basis points to 5.8%, and in the Enterprise segment by 200 basis points to 6.9%. At the same time, its gross margin dropped by nearly 220 basis points to 29.2% in Q2.
For the full year 2023, the company expects net sales to range between $30.6 billion and $30.9 billion, with comparable store sales expected to rise by a mid-single-digit percentage. EPS for the year is anticipated between $5.78 and $6.08.
Furthermore, for the third quarter, Dollar Tree expects net sales to hover between $7.3 billion and $7.5 billion. EPS for the quarter is estimated in the range of $0.94 to $1.04.
Overall, the Street has a consensus price target of $157.71 on Dollar Tree, along with a Moderate Buy consensus rating.
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