Dollar Tree shares slide after discounter cuts full-year forecast

Company Overview - Dollar Tree's shares fell approximately 10% in premarket trading after the company revised its full-year outlook, indicating increased pressures on middle-income and higher-income customers [1] - The retailer now expects consolidated net sales to be between $30.6 billion and $30.9 billion, and adjusted earnings per share to range from $5.20 to $5.60, down from previous guidance of $31 billion to $32 billion in net sales and $6.50 to $7 for adjusted earnings per share [2] Financial Performance - Chief Financial Officer Jeff Davis attributed the lowered forecast to a conservative outlook and costs related to the acquisition of 99 Cents Only stores, as well as increased general liability claims leading to higher costs for reimbursements and litigation [3] - Same-store sales for Dollar Tree rose by 1.3%, while Family Dollar saw a slight decline of 0.1%, resulting in an overall increase of 0.7% in same-store sales for the company [5] Market Conditions - The company has experienced softer sales as customers across various income levels are being more cautious with their spending, a trend also noted by rival Dollar General [4] - Dollar Tree has faced specific challenges, including the announcement of closing about 1,000 Family Dollar stores due to market conditions and performance issues, and is considering selling the Family Dollar brand after acquiring it for nearly $9 billion in 2015 [6] Stock Performance - As of the latest close, Dollar Tree's shares have decreased nearly 43% year-to-date, hitting a 52-week low at $81.65 [7]