According to the discount retailer's CFO, Dollar Tree Inc. may increase prices in some areas due to theft. Speaking to analysts and investors Thursday morning, CFO Jeff Davis said Dollar Tree expects to "improve our performance on shrinkage through defensive selling efforts, real estate optimization, and perhaps higher prices to compensate for areas with systematically higher contraction." "Downgrade" generally refers to theft and other inventory losses in the retail industry. Also, revealing its first-quarter earnings, the company said it predicts "discretionary profit mix" will also normalize over time. Dollar Tree said Thursday it forecasts diluted earnings per share for the fiscal year to end in the $5.73 to $6.13 range; year. According to the earnings statement, these figures were also responsible for "the expected contribution of $0.29 from week 53 and the $0.12 fee for legal reserve." KOHL'S, FOOT LOCKER, TARGET, WALMART SAY RED RETAIL THEFT IS GOING Worse The financial outlook for 2023 also included the expected $30 to $30.5 billion range for consolidated net sales and "low to medium single digital comparable store sales growth." “While we are modestly raising the midpoint of our earnings level guidance, we are increasingly cautious about our margin outlook given the growing challenges to downsize across the industry, the negative change in the sales mix and their impact on our near-term profitability,” Davis said. in search. "Since the start of the fiscal year, the impact of these two factors on our financial results has intensified." According to CFO Dollar Tree, "the combined and continued full-year earnings impact of the negative supplies mix and higher contraction is expected to be approximately $0.55 per share in 2023." Davis later noted in the search that the increase in theft that Dollar Tree observed occurred "in all psychiatrist classrooms." TARGET EXPANDS LOCKED TRADING BOXES TO BACK TO SHOPPING He also said that other retailers are facing similarly higher levels of theft. He added that Dollar Tree has taken "all appropriate steps" to mitigate this. CEO Rick Dreiling told listeners that he believes the shifting and shrinking effect of supplies will be temporary. "If we're being realistic here, I think this consumable shift and this shrinking effect is temporary," he said. "I don't believe we're going to live with them forever, and that's very important to what we do." According to the company executives in the interview, Dollar Tree's approach to downsizing is "multifaceted". Davis said the company is "bringing some new technology into the store in how we monitor and warn" and is working with local law enforcement as well as other measures to combat the shrinkage. THE CRIME HOLIDAY SHOPPING SEASON IN THE WORLD OF RETAIL WAS NOT VERY HAPPY The discount retailer's revenue increased 6% year-over-year to $7.32 billion in the first quarter. Meanwhile, net income for the quarter was $299 million, down 44% from $536.4 million. The price of Dollar Tree shares fell more than 10% from its level at the beginning of the day.