: Dollar Tree matches and profit and tops sales views, moves to .25 price point for all stores #FinanceUSA #StockMarketNEWS Shares of Dollar Tree Inc. sank 1.2% in premarket trading Tuesday, after
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Dollar Tree matches and profit and tops sales views, moves to .25 price point for all stores #FinanceUSA #StockMarketNEWS
Shares of Dollar Tree Inc. sank 1.2% in premarket trading Tuesday, after the discount retailer matched profit expectations and topped sales forecasts but saw gross margin fall, and said it was moving to a .25 price point for all Dollar Tree stores. Net income fell to 6.8 million, or 96 cents a share, from 0.0 million, or .39 a share, in the year-ago period. The FactSet consensus for earnings per share was 96 cents. Sales rose 3.9% to .42 billion, above the FactSet consensus of .41 billion, while cost of sales grew 9.4% to outpace sales growth and to knock gross margin down to 27.5% from 31.2%. Same-store sales rose 1.6%, beating the FactSet consensus of 1.5%, as Family Dollar same-store sales rose 2.7% and Dollar Tree same-store sales increased 0.6%. For the fourth quarter, the company expects EPS of .69 to .79 and sales of .02 billion to .18 billion, compared with the FactSet EPS consensus of .74 and sales expectations of .03 billion. Regarding the .25 price point: "For 35 years, Dollar Tree has managed through inflationary periods to maintain the everything-for-one-dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades. However, as detailed in its September announcement, the company believes this is the appropriate time to shift away from the constraints of the .00 price point in order to continue offering extreme value to customers." The stock has rallied 28.1% over the past three months through Monday while the S&P 500 has gained 4.5%.