Shares of Dollar Tree Inc (NASDAQ: DLTR) are down 15% on Thursday after the discount retailer said it missed earnings estimates in its fiscal first quarter.

The stock is taking a hit also because the management cited “elevated shrink” and trimmed profit guidance for the full year.

Dollar Tree now forecasts up to $6.13 of per-share earnings in fiscal 2023. Reacting to its outlook, famed investor Jim Cramer said today on CNBC’s “Squawk on the Street”:

They reported same-store sales that weren’t that good. But their estimates, horrendous.

Overall comparable sales climbed 4.8% in its recently concluded quarter versus up 3.6% expected. Dollar Tree stock is now down 5.0% versus the start of the year.

Earned $299 million versus the year-ago $536.4 million
Per-share earnings also declined from $2.37 to $1.35
Adjusted EPS printed at $1.47 as per the press release
Revenue went up 6.1% year-on-year to $7.32 billion
Consensus was $1.52 a share on $7.28 billion revenue
Gross margin contracted 340 basis points to 30.5%

The retailer’s guidance for the current quarter also came in well below the Street estimates. Cramer added:

Seems like they don’t have the money to address [shrink] the way TJX did. But they must. Because there’s no coming back if you have this trend of theft. They have to deal with it. Spend money, solve it.

Nonetheless, Wall Street currently has a consensus “overweight” rating on this retail stock.