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Shares of the Chesapeake, Virginia-based retailer fell 9.3% in premarket trading.
Consumers, especially from low- and middle-income groups, are turning price-sensitive as they feel the pinch of a steady rise in the cost of everything from groceries to consumer durables, and buying more essentials, which are typically lower margin.
“Outlook takes into consideration several factors including shifting sales mix, unfavorable shrink trends, higher diesel fuel prices, incremental savings on ocean freight,” said CFO Jeff Davis.
Dollar Tree (NASDAQ:DLTR) said it now expects to earn in the range of $5.78 to $6.08 per share in fiscal 2023, compared with its prior outlook of between $5.73 and $6.13.
Analysts on average expect earnings per share of $6.03, according to Refinitiv IBES data.
