Dollar stores hit by freight costs as labor squeeze looms

Top U.S. dollar stores on Thursday gave tepid full-year profit forecasts, weighed down by higher transportation costs, even as a stimulus check-driven boost in spending helped them post better-than-expected quarterly sales.

Dollar Tree Inc’s(DLTR.O)shares dropped nearly 8%, as it forecast freight costs to be up as much as 80 cents per share for the rest of the year, compared to last year.

Increasing freight costs have dented profit outlooks across industries,…