Dollar Tree (DLTR) shares have fallen over 2% in early trading on Monday after Bernstein lowered its price target on the discount store to $100 from $109, noting that the company's earnings before interest and taxes (EBIT) have fallen meaningfully short of expectations.

Bernstein maintained its 'Market Perform' rating, according to TheFly. The firm stated that a lot has changed since its last Investor Day in 2023, when Dollar Tree guided to mid-single-digit comparable sales, a 35.5% to 37.5% gross margin, and a 14% to 15% EBIT margin by fiscal 2026 for the Dollar Tree banner.

The firm noted that, on the top line, Dollar Tree fell short in 2024; however, momentum in the first half of 2025 was strong, supported by the multi-price rollout and macroeconomic tailwinds.

Retail sentiment on Dollar Tree remained unchanged in the 'bearish' territory compared to a day ago, with message volumes at 'low' levels, according to data from Stocktwits.

Bernstein said that Dollar Tree has performed largely in line with gross margin expectations. However, its EBIT margin has fallen meaningfully short of expectations, even after adjusting for corporate expenses, due to higher labor costs and general liability accruals, the firm added.

In September, Dollar Tree CEO Mike Creedon stated that tariffs continue to be a source of ongoing volatility, and operating in an environment where rates fluctuate frequently remains one of the company's most considerable challenges.

Dollar Tree's shares have jumped over 17% this year and gained 26.5% in the last 12 months.

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