Discount chain Dollar Tree issued a weak sales outlook for the coming year on Monday, citing reduced consumer spending as families deal with financial pressures.
The retailer’s stock price fell 3% during pre-market trading following the announcement.
American consumers are grappling with higher living expenses and signs that job market conditions are worsening.
February’s unemployment rate climbed to 4.4%, up from 4.3% the previous month. Consumer prices are also expected to have risen in February, driven by tariff impacts and higher fuel costs linked to Middle East conflicts.
Competitor Dollar General issued a similar weak sales projection last week, indicating reduced demand as price-conscious customers become more choosy about purchases.
Dollar Tree projects fiscal 2026 revenue between $20.5 billion and $20.7 billion, falling short of the $20.69 billion that Wall Street analysts had anticipated, according to LSEG data.
The company anticipates adjusted earnings per share for fiscal 2026 to range from $6.50 to $6.90, which aligns closely with analyst expectations of $6.69.
