Dollar Tree Inc. said March 7 that it expects diluted EPS between $5.25 and $5.60 for its fiscal year 2018, coming in lower than the EPS of $7.21 the company reported for fiscal 2017.
In fiscal 2017, Dollar Tree received a benefit of $583.7 million from federal tax reform.
The company said it expects a smaller benefit from federal tax reform of $250 million for fiscal 2018. During the year, Dollar Tree said it will spend about $100 million in stores to increase hours and training for workers, increase hourly rates and add established paid maternity leave for eligible workers.
In its fiscal 2018 outlook, the company also anticipated consolidated net sales at a range of $22.70 billion to $23.12 billion, based on a low single-digit increase in same-store sales and a 3.7% growth in square footage.
The retail chain expects diluted EPS between $1.18 and $1.25 for the fiscal first quarter of 2018. The company anticipates consolidated net sales for the quarter between $5.53 billion and $5.63 billion, based on a low-single-digit increase in same-store sales.
The company provided its guidance as it reported fiscal fourth quarter and full fiscal-year 2017 results, which missed analyst expectations. Dollar Tree posted an adjusted EPS of $1.89, falling just short of the S&P Capital IQ mean consensus estimate of $1.90. The company also reported same-store sales growth of 2.4%, well under the S&P Capital IQ mean consensus estimate of 3.22%.
Dollar Tree shares fell 15% to $88.67 in midday trading March 7.
