Dollar Tree down after forecasting sharp drop in second-quarter earnings

Shares of discount retailer Dollar Tree DLTR.O down as much as 10.2% at $86.89 in early trading

Co estimates Q2 adjusted earnings per share from continuing operations that excludes its Family Dollar business to be down as much as 45% to 50% on cost pressures, including higher tariffs, compared to estimates of a decline of 4.6% - data compiled by LSEG

However, expects earnings to re-accelerate in the third and fourth quarters to meet the now raised full-year earnings outlook

Forecasts fiscal 2025 adjusted EPS in the range of $5.15 to $5.65, compared with prior forecast of $5.00 to $5.50

Says full-year earnings will be impacted between 30 cents and 35 cents from costs related to sale of its less profitable Family Dollar banner for $1 billion

DLTR also beats Q1 sales and profit estimates

Up to last close, stock has risen 29% YTD