Dollar Tree Grapples With Volatile Trends, Cost Pressures, UBS Says

MT Newswires Live05-23 01:30

Dollar Tree (DLTR) is grappling with volatile trends as the retailer works to retain its appeal to budget-strained shoppers amid rising costs and mounting affordability pressures, UBS Securities said Thursday in a report.

UBS said the market widely expects fiscal Q1 comparable sales at or below the bottom end of the company's 3% to 4% full-year comp outlook, making the current 3.6% consensus appear too optimistic.

Dollar Tree will likely move its comparable-sales outlook to 1% to 3% for the year, which in turn would probably mean lowering its EPS forecast to $6.10 to $6.50 from the current $6.50 to $6.90 range, the report said.

The company will also need to account for higher fuel and transportation costs alongside a softer sales outlook, UBS said. Q1 results are due Thursday.

UBS lowered its price target on Dollar Tree stock to $132 from $138 and maintained its buy rating.

Price: 94.71, Change: -1.01, Percent Change: -1.05

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment