Dollar Tree Inc

**Mixed Financial Results**: Dollar Tree reported second quarter fiscal 2024 results with net sales slightly up by 0.7% to $7.4 billion. Adjusted EPS was $0.67, falling short of expectations primarily due to an $0.30 negative impact from increased general liability claims and an $0.08 impact from lower sales flow-through. The Dollar Tree segment experienced a positive comp of 1.3%, but Family Dollar struggled, with a flat comp and overall challenging conditions affecting lower-income customers.

**Revised Full-Year Outlook**: The full-year 2024 sales outlook was lowered to $30.6 billion - $30.9 billion, reflecting anticipated low-single-digit comp growth across both Dollar Tree and Family Dollar segments. Adjusted EPS expectations are now between $5.20 and $5.60, down significantly from the prior midpoint of $6.75, influenced by a combination of Q2 underperformance, increased liability costs, and anticipated upfront expenses related to the acquisition of 99 Cents Only stores.

**Challenges from Macroeconomic Environment**: The company faced tougher macro pressures, with inflation and rising interest rates negatively affecting consumer spending behavior, particularly among middle and upper-income shoppers at Dollar Tree. Family Dollar specifically saw a continuing weakness in its core lower-income consumer base. Adjustments were made to reflect the adverse effects of SNAP benefit reductions.