Shares of Greenback Tree fell Thursday after the corporate reduce its monetary outlook for the 12 months, citing its investments in providing extra aggressive costs at its Household Greenback shops.

The transfer got here after the corporate reported second-quarter earnings that topped Wall Road estimates by a penny, whereas income was basically in step with expectations. Its shares have been down 8% in pre-market buying and selling.

Shares of rival Greenback Basic, which reported better-than-expected outcomes, additionally slid after initially rising.

Greenback Tree CEO Mike Witynski mentioned in a launch that the corporate’s pricing investments at Household Greenback has closed the pricing hole with its key rivals and mentioned its “worth proposition is essentially the most aggressive it has been up to now ten years.”

He mentioned the corporate expects gross margins to be pressured within the again half of the 12 months by partially by the strikes, however they need to repay over time.

“We’re assured these pricing and different investments will generate very enticing returns over the long run,” he mentioned.

For the second quarter, Greenback Tree mentioned it earned $1.60 per share. Wall Road anticipated $1.59 per share. Its income for the interval was $6.77 billion, which was basically in step with estimates of $6.79 billion. Similar-store gross sales rose 7.5%.

Greenback Basic, in the meantime, reported earnings of $2.98 per share, which was higher than the $2.93 per share Wall Road anticipated. Income was $9.43 billion, above the $9.Four billion analysts anticipated. Similar-store gross sales rose 4.6%.

Shares of Greenback Basic have been down 2% in pre-market buying and selling.