Dollar Tree (NYSE: DLTR) shares fell 10% in pre-market Thursday after the retailer provided weaker-than-expected profit for its third quarter.

Dollar Tree expects EPS in the range of $0.94 to $1.04 for the third quarter, missing the consensus of $1.28. Net sales are projected to range between $7.3 billion and $7.5B, with the consensus estimate at $7.3B.

The company expects FY EPS to fall within the range of $5.78 to $6.08, with the midpoint of the range coming in below the consensus estimate of $6.03. Revenue is seen from $30.6B to $30.9B, higher than the expected $30.4B.

“In the second quarter we continued to generate strong top-line results across both segments. While factors like sales mix and elevated shrink continue to pressure margins, we generated a year-over-year increase in gross profit dollars. We are pleased with the progress of our transformation to date and remain confident in our ability to deliver our growth objective of $10 or more of diluted EPS by 2026,” stated Jeff Davis, Chief Financial Officer.

For its second quarter, DLTR reported adjusted EPS of 91 cents on revenue of $7.32B. Analysts were looking for earnings of 87 cents per share on revenue of $7.18B.

By Senad Karaahmetovic