Why Dollar Tree Stock Plunged 15% This Week
Shares of Dollar Tree (NASDAQ: DLTR) are down 14.9% this week as of the market's close on Thursday after the value-oriented retail chain announced weaker-than-expected quarterly results.
For its fiscal fourth quarter ended Feb. 3, 2024, Dollar Tree's total revenue grew 11.9% year over year to $8.64 billion, including a 3% increase in same-store net sales (note there was an extra week this quarter as compared to the same year-ago period).
On the bottom line, that translated to a massive net loss of $1.71 billion, or $7.85 per share during the quarter based on generally accepted accounting principles (GAAP). But that was primarily due to around $2 billion of goodwill impairment and asset impairment charges incurred during the quarter stemming from the company's ongoing store portfolio review. Adjusted for those charges, Dollar Tree's non-GAAP earnings were $555.7 million, or $2.55 per share.
Source Fool.com
