Dollar Tree posts better-than-expected Q2 earnings

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Dollar Tree skids in premarket despite better-than-forecast earnings

Dollar Tree Inc. shares DLTR, +1.55% slid 6% in premarket trades Thursday, after the operator of Family Dollar and Dollar Tree stores posted better-than-expected second-quarter earnings but said customer visits are declining during the pandemic. The company said it had net income of $261.5 million, or $1.10 a share, in the quarter, up from $180.3 million, or 76 cents a share, in the year-earlier period. Sales rose to $6.28 billion from $5.74 billion.

6%, while Dollar Tree same-store sales were up 3.1%. The company is not providing guidance, given the uncertainty created by the pandemic, but it noted some changes."Consumer shopping patterns are evolving," Chief Executive Mike Witynski said in a statement."Customers are shopping with a purpose, while looking to minimize risk and exposure. As a result, we are seeing material increases in average ticket, while seeing a decline in average visits.

 

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