(Reuters) -Discount store operator Dollar Tree ( DLTR ) forecast its second-quarter adjusted profit to be down as much as 50% compared with a year ago, accounting for volatility caused due to changing tariffs, sending its shares about 4% lower in premarket trading.

Dollar Tree ( DLTR ), which is selling its less profitable Family Dollar banner for $1 billion to a group of private equity investors, said the company's earnings would re-accelerate in the second half of the year.

The company raised its annual profit forecast on Wednesday, benefiting from lower freight costs and resilient demand for affordable essentials.

Dollar Tree ( DLTR ) now expects fiscal 2025 adjusted earnings per share to be in the range of $5.15 to $5.65, compared with its prior forecast of $5.00 to $5.50.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Anil D'Silva and Maju Samuel)