Dollar Tree Inc (NASDAQ:DLTR) shares are trading lower Wednesday alongside several other retailers after Target Corp (NYSE:TGT) announced worse-than-expected earnings results.
Target reported first-quarter earnings of $2.19 per share, which came in below the estimate of $3.07 per share, according to data from Benzinga Pro.
Operating income margin rate also came in well below expectations at 5.3% in the first quarter compared with 9.8% in 2021, driven by gross margin pressure reflecting actions to reduce excess inventory as well as higher freight and transportation costs.
Related Link: 'We Faced Unexpectedly High Costs': Why Target Shares Are Falling Today
Dollar Tree is set to report its first-quarter results before the market opens on May 26.
DLTR Price Action: Dollar Tree shares have traded between $84.26 and $177.19 over a 52-week period.
The stock was down 16.5% at $130.50 at press time.
Photo: Mike Mozart from Flickr.
