11:53 AM EDT, 05/21/2024 (MT Newswires) -- Dollar Tree's ( DLTR ) fiscal Q1 results in the coming weeks will likely show a "challenging start to the year" with possible risks to the retailer's full-year guidance, Oppenheimer said Tuesday in a report.

"In contrast to the Q4 setup, we would characterize expectations as quite low amidst management execution challenges and increased skepticism on the Family Dollar turnaround," the report said.

The investment firm expects the company to post Q1 EPS of $1.38, compared with the consensus estimate of $1.43 and guidance of $1.33 to $1.48.

"Our updated views incorporate more conservative comp growth assumptions driven by factors including ongoing discretionary category challenges, adverse weather, and potential disruptions related to the multi-price point rollout," Oppenheimer said.

"We remain sidelined" on Dollar Tree's ( DLTR ) shares, Oppenheimer said. "On the positive side, management is moving aggressively with actions to drive improved sales productivity and profitability over time. However, significant complexity associated with turnaround efforts in the current competitive/economic landscape, including recent challenges with the Family Dollar banner, suggest to us execution risks to the $10+ EPS delivery long-term."

Oppenheimer has a perform rating on the stock.

Dollar Tree's ( DLTR ) shares rose 0.7% in recent trading Tuesday.

Price: 114.26, Change: +0.78, Percent Change: +0.69