Dollar Tree cuts FY19 EPS view to $4.66-$4.76 from $4.90-$5.11, consensus $5.05
Narrows FY19 revenue guidance to $23.62B-$23.74B from $23.57B-$23.79B, consensus $23.74B. This estimate is based on a low single-digit increase in SSS and 1.1% selling square footage growth. "Just prior to the company's previous quarterly earnings announcement on August 29, the United States Trade Representative, or USTR, announced that tariffs on List 1, 2, and 3 products would increase from 25% to 30% on October 1, 2019, tariffs on List 4A products would increase from 10% to 15% on September 1, and tariffs on List 4B products would increase from 10% to 15% on December 15. As noted in its August 29 earnings announcement, the outlook provided at that time did not include any impact related to these changes. The company now estimates that Section 301 tariffs will increase its cost of goods sold by approximately $19M, or 6c per diluted share, in Q4 if tariffs are fully implemented."