LONDON (ShareCast) - (ShareCast News) - US discount retailer Dollar Tree gave a disappointing statement on its outlook after fourth-quarter performance and gave a annual results.
On net sales that rose to $6.36bn from $5.64bn, net income from the final three months of the year to 3 February tripled to $1.04bn compared to $321.8m in the same period last year. The company's adjusted earnings per share came to $1.89.

Both revenue and EPS came in below the average forecast from Wall Street analysts of $6.40bn and $1.90, respectively recorded by FactSet.

For the first quarter of 2018, sales are seen at $5.53-5.63bn, based on a low single-digit increase in same-store sales for the combined enterprise, with diluted EPS of $1.18-1.25. Analysts were expecting earnings of nearer $1.31.

The outlook for 2018 was guided to net sales of $22.7-23.12bn, based on a low single-digit increase in same-store sales and 3.7% square footage growth. Diluted EPS are expected to range from $5.25 to $5.60.

Dollar Tree received a $562m non-cash benefit from Donald Trump's tax reforms and said it would use $100m of that to raise wages of hourly workers.

Same-store sales rose a 2.4% while adjusted same-store sales increased 2.5% but missed the consensus set at 2.9% by FactSet.

During the quarter, the Company opened 137 stores, expanded or relocated eight stores, and closed 46 stores. Retail selling square footage at fiscal year-end was approximately 116.6m square feet.

"I am proud of our team's performance in the fourth quarter and our results for 2017," stated Gary Philbin, president and chief executive officer.

"For the quarter, we posted positive same-store sales in our Dollar Tree and Family Dollar banners, while improving gross margin and leveraging costs."

Philbin added, "We intend to continue focusing on delivering great values and convenience to our shoppers, while improving our operating performance and returning value to our shareholders for the long-term."

Shares in Dollar Tree fell 14.5% to $89.25 overnight.

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