FILE PHOTO: A Dollar Tree sign is seen outside the store in Washington, U.S., June 1, 2021. REUTERS/Erin Scott
March 2, 2022
(Reuters) -Discount store Dollar Tree Inc forecast full-year sales and profit largely below analysts’ estimates on Wednesday, hurt by product shortages and higher labor costs due to global supply chain disruptions, sending its shares 4% down in pre-market trading.
Retailers saw strong demand for discounted items during the COVID-19 pandemic, but port congestions and higher labor costs have made it difficult to keep shelves stocked up.
The discount store operator forecast full-year sales between $27.22 billion to $27.85 billion, below analysts’ average estimate of $28.04 billion, according to IBES data from Refinitiv .
It forecast full-year profit between $7.60 and $8.00 per share, compared with analysts’ average estimate of $7.60 per share, according to IBES data from Refinitiv.
America’s other biggest discount store, Dollar General Corp, is also combating spiraling freight costs, shipping delays and other supply-chain snarls, and has cut its annual forecast for sales and profit.
It will report its fourth-quarter earnings on March 17.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
Source: One America News Network
