Shares of Dollar Tree (DLTR) - Get Report were off slightly to $99.51 Thursday even though the discount variety retail chain beat Wall Street's second-quarter earnings expectations.
The Chesapeake, Virginia-based company reported net income of $180.3 million, or 76 cents a share, down from $273.9 million, or $1.15 a share, a year ago, but above analysts' estimates of 70 cents.
Sales totaled $5.74 billion, up 3.9% from a year ago, and beat Wall Street's call for $5.72 billion. Same-store sales increased 2.4%, beating analysts' expectations of a 1.9% increase.
Looking ahead, Dollar Tree said it expects third-quarter earnings of $1.07 to $1.16 a share on revenue of $5.66 billion to $5.77 billion, compared with Wall Street's call for earnings of $1.15 a share on sales of $5.74 billion.
Dollar Tree also raised its full-year earnings guidance to $4.90 to $5.11 a share, up from an earlier estimate of $4.77 to $5.07 a share, and its revenue forecast to $23.57 billion to $23.79 billion from earlier guidance of $23.51 billion to $23.83 billion.
Wall Street is looking for earnings of $5.14 a share on sales of $23.68 billion.
The company, which operates through Dollar Tree and Family Dollar segments, said its updated outlook does not include the recently announced U.S. tariff increases on China-made goods "as the company is currently working to mitigate these costs."
Dollar Tree bought Family Dollar in 2015 for $8.5 billion. In March, Dollar Tree said it was closing 390 Family Dollar stores and that it had taken a $2.73 billion charge in the fourth quarter for writing down the value of Family Dollar.
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