Dollar Tree cautioned investors that tariffs and price volatility could result in a profit decline of up to 50% in the current quarter.

The discount retail chain said on Wednesday, June 4, that adjusted profit during the second quarter, which ends Aug. 2, could be down as much as 45% to 50% compared to a year ago.

"Given the volatility of today's operating environment, it is challenging to predict with precision the near-term performance of the business in Q2, especially regarding tariff and other cost mitigation efforts," said Dollar Tree CEO Mike Creedon in a call with investment analysts Wednesday.

For the full year, Dollar Tree assumes it "will be able to mitigate most, if not all of the potential earnings impact from higher tariffs, assuming the current levels remain in place,

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