Dollar Tree's stock plummeted more than 20% after reporting disappointing second-quarter earnings and lowering its full-year forecast, citing a challenging macroeconomic environment and inflationary pressures on its middle- and higher-income customers. The retailer's adjusted earnings per share were significantly below expectations, and net sales also missed analyst estimates. Dollar Tree's struggles mirror those of competitor Dollar General, which also reported a downward revision in guidance due to financially constrained customers. Both companies are facing increased competition from larger retailers like Walmart and Target, as well as online discount platforms. Dollar Tree's restructuring efforts, including the potential sale or spinoff of its Family Dollar banner, have not been enough to counteract the economic pressures. The broader economic context shows a mixed job market, with a slight decrease in job openings and a potential Federal Reserve rate cut on the horizon.