Dollar Tree just signaled for a disappointing holiday earnings quarter thanks to U.S.-China trade war tariffs, sending its shares cratering on Tuesday.
The discount retailer said the tariffs slapped on Chinese imports will add $19 million, or 6 cents per share, to its costs of goods for the fourth quarter of 2019.
The company now sees fourth quarter earnings per share in a range between $1.70 and $1.80. This is well below analysts expectations of $2.02 per share, according to Refinitiv.
“The decrease from prior implied fourth quarter guidance represents the expected effects of…the continued uncertainty regarding trade and the related tariffs,” the company said in a release.
As a part of a prolonged trade war, the U.S. and China have engaged in a tit-for-tat tariff conflct for over a year. These tariffs have pressured retailers with large amounts of imported goods from China. It is yet unclear if both sides will reach a compromise before Dec. 15, when new U.S. tariffs on Chinese goods are set to kick in.
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