UPDATE 1-Greenback Tree cuts revenue forecast as prices rise

(Provides forecast, CEO remark; updates shares)

Could 30 (Reuters) – Greenback Tree Inc lower its full-year revenue forecast on Thursday, citing prices associated to retailer closures and freight, sending its shares down 4% in buying and selling earlier than the bell.

The corporate mentioned the forecast contains the influence of tariffs which have been imposed on Chinese language imports, however doesn’t account for a possible hit from extra levies.

“If tariffs on Checklist Four merchandise are carried out, we anticipate that it is going to be impactful to each our enterprise, and particularly to shoppers usually,” Chief Govt Officer Gary Philbin mentioned in a press release.

The low cost retailer operator lower its full-year earnings forecast to between $4.77 and $5.07 per share, together with a 10- cent hit from retailer closures and a 5-cent influence from import freight prices.

Greenback Tree had earlier forecast full-year incomes within the vary of $4.85 to $5.25 per share. The corporate reported a 2.5% rise in same-store gross sales at its Greenback Tree shops within the first quarter ended Could 4. Analysts on common had anticipated a 2.9% enhance, in keeping with IBES knowledge from Refinitiv.

Web revenue rose to $267.9 million, or $1.12 per share, within the quarter from $160.5 million, or 67 cents per share, a yr earlier. (Reporting by Soundarya J in Bengaluru; Enhancing by James Emmanuel and Anil D’Silva)

Author: Maxwell C.

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