March 16 (Reuters) - Discount retailer Dollar Tree forecast annual sales largely below expectations on Monday, as budget-conscious consumers tightened spending.
Shares of the company were down 1.8% in premarket trading.
Shoppers in the U.S. are navigating increasing costs of living and signs of deteriorating labor market conditions.
The U.S. unemployment rate rose 4.4% in February, from 4.3% in January. Consumer prices also likely accelerated in February, fueled by tariffs and a rise in the costs of gasoline and oil due to tensions in the Middle East.
Rival Dollar General similarly forecast read more soft full-year sales last week, signaling weaker demand as value-seeking shoppers grow more selective.
Dollar Tree expects fiscal 2026 net sales in the range of $20.5 billion to $20.7 billion, compared with analysts' estimates of $20.69 billion, per data compiled by LSEG.
The company expects fiscal 2026 adjusted earnings per share in the range of $6.50 to $6.90, largely in line with analysts' estimates of $6.69.
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