- Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Dollar Tree Inc (NASDAQ:DLTR) with a price target of $165.
- Dollar Tree’s 1Q23 EPS of $1.47 missed the consensus estimate of $1.52, reflecting worse-than-anticipated adjusted operating margin contraction of 445 basis points to 6.1%.
- The pressure on operating margin was driven by the gross margin compression of 345 basis points to 30.5%, primarily due to lower initial markup, and elevated shrink, and unfavorable product mix shift to consumables, noted the analyst.
- Dollar Tree guided 2Q23 EPS of $0.79-$0.89, well below the consensus of $1.26, given the pressure on profits.
- The analyst is disappointed by another mixed earnings report and the fourth consecutive lowered guidance.
- However, the analyst continues to believe the company remains well-positioned for the long term to gain market share, given its convenient locations, value merchandise, and transformative initiatives.
- Price Action: DLTR shares are trading lower by 10.09% at $139.67 on the last check Thursday.
The Latest Analyst Ratings for Foot Locker
Over the past 3 months, 14 analysts have published their opinion on Foot Locker (NYSE:FL) stock. These analysts…
