Here's another reason why I will avoid retail. At least for now.
Dollar Tree shares slide 41 percent due to profit warning
NEW YORK, Dec 19 (Reuters) - Shares of Dollar Tree Stores Inc. (NasdaqNM:DLTR - news) fell 41 percent in early trading on Tuesday after the discount variety store chain warned its fourth-quarter earnings will be well below Wall Street expectations due to disappointing holiday sales.
Shares of Dollar Tree were off $15 at $21-3/8 after falling to a new 52-week low of $20-3/4 early Tuesday on the Nasdaq. The stock price has a 12-month high of $48-1/4.
Mark D. Mandel, an analyst who covers Dollar Tree stock for The Robinson-Humphrey Co., said the stock had already reached its lowest price range and would not fall any further. ``Once it has settled down, it will be OK,'' Mandel said.
Goldman Sachs cut earnings per share estimates for Dollar Tree to 60 cents from 70 cents for the fourth quarter and to $1.33 from $1.55 for 2001.
On Monday, the Chesapeake, Va.-based retailer of products such as housewares, toys and books priced at $1 each, said it expected earnings of 59 cents to 62 cents a diluted share, and revenue between $605 million and $615 million for the fourth quarter, which includes the critical final holiday shopping weeks of the year.
Analysts' consensus estimate was 70 cents a share for the quarter, according to First Call/ Thomson Financial
biz.yahoo.com |
