U.S. retailer Dollar Tree Inc. lowered its earnings per share guidance for full fiscal year 2018 after reporting first-quarter EPS that fell short of analysts' expectations.
The Virginia-based company now projects its diluted EPS for the full fiscal year 2018 between $4.80 and $5.10, down from its previous guidance range of $5.25 to $5.60. Net consolidated sales are expected in the range of $22.73 billion to $23.05 billion. The company's previous expectation for full-year sales was between $22.70 billion and $23.12 billion.
Dollar Tree said its updated annual guidance includes factors such as its first-quarter debt refinancing costs, interest expense savings from its refinancing, a reduction in its second-quarter corporate tax rate and costs related to freight and shrink expenses.
For its fiscal first quarter ended May 5, the retailer's adjusted EPS came in at $1.19, falling short of the S&P Capital IQ mean consensus estimate for normalized EPS of $1.23. Adjusted first-quarter net profit rose to $284.1 million from $232.1 million a year ago. Consolidated net sales increased 5.0% to $5.55 billion from $5.29 billion in the prior year’s first quarter.
