VIDEO: Dollar Tree Reports Profit but Falls on Cautious Outlook

Discount retailer Dollar Tree announced its second quarter earnings, and forecast a tepid third quarter. The chain, which has actually benefitted from the shaky economy over the past few years because of its low prices, reported a profit of $119.2 million, or 51 cents a share, for the quarter ending July 28th. That’s up from $94.9 million, or 39 cents a share, a year ago. Those quarterly earnings met analyst expectations.But Dollar Tree forecast a third quarter below analyst predictions, saying that it expected profits of 47 cents to 51 cents a share on revenue of $1.71 to $1.75 billion. Analysts had been forecasting earnings of 52 cents a share on revenue of $1.77 billion. On the news, Dollar Tree stock is currently trading down over 8%, and only continuing to drop. According to Reuters, Dollar Tree’s cautious predictions may be a sign that the low income families who frequent the store are feeling increasing economic pressure. For more on the latest business news, follow us on Twitter @FNNOnline, or check out our website at fnno.com

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