With stubborn inflation, the company is experiencing a fall in demand for higher-margin discretionary goods compared to perishables like snacks and cookies, that has dented margins at a time when costs have been elevated.
And, like so many other suffering retailers, DLTR has Soros-DAs to thank for its woes: while the company showed an increase in sales, which rose 6.1% in the quarter to $7.32 billion, it slashed its profit outlook due to shrink — a polite word for theft (EPS of $1.47 missed estimates of $1.52).
“While we are seeing early results from our initiatives, we are not immune to the external pressures affecting all of retail, notably, the margin impact of elevated shrink and the product mix shift to consumables,” CEO Rick Dreiling said in a news release. “While we are maintaining our full-year 2023 sales outlook, we are adjusting our EPS outlook as we expect the elevated shrink and unfavorable sales mix to persist through the balance of the year. We still expect earnings to be more back-end loaded this year as the benefits of lower ocean freight rates flow through.”
As a result of the reduced spending and increased theft, the Chesapeake, Virginia-based company said it now expects fiscal 2023 earnings of $5.73 to $6.13 per share, compared with its prior outlook of between $6.30 and $6.80 per share
www.zerohedge.com/markets/dollar-tree-plunges-after-profit-tumbles-thieves-pillage-stores
Those damn joggers and “youths” keep killing da businesses..
h/t Barry Miacockener