Margins deteriorated in the quarter on rising "shrink," or inventory loss due to shoplifting or employee theft. Also, guidance missed the average analyst estimates. 

The discount store chain recorded a net income of $200.4 million and diluted EPS was $0.91 for the quarter, beating the average analyst estimate tracked by Bloomberg by several cents. However, this was down from $359.9 million, or $1.61 a share, in the quarter one year ago. 

Here's a snapshot of second-quarter earnings: 

Adjusted EPS 91c, estimate 87c

EPS 91c vs. $1.60 y/y

Net sales $7.32 billion, +8.2% y/y, estimate $7.21 billion 

Dollar Tree net sales $3.87 billion, +8.5% y/y, estimate $3.77 billion 

Family Dollar net sales $3.45 billion, +7.9% y/y, estimate $3.44 billion 

Gross profit margin 29.2% vs. 31.4% y/y, estimate 29.7% 

Dollar Tree gross margin 33.4% vs. 37.4% y/y, estimate 34.8%

Total location count 16,476, +1.5% y/y, estimate 16,506 

Dollar Tree Locations 8,177, +0.9% y/y, estimate 8,244

Family Dollar locations 8,299, +2.1% y/y, estimate 8,276

However, the third-quarter earnings forecast missed average analyst estimates: 

Sees EPS 94c to $1.04, estimate $1.29 (Bloomberg Consensus)

Sees net sales $7.3 billion to $7.5 billion, estimate $7.33 billion