Dollar Tree (DLTR) may face a modest earnings reset as recent grocery price increases appear to be getting rolled back, while weak shopper response and softer store-level trends may weigh on results, Oppenheimer said in a note Tuesday.

Weekend store checks showed new price cuts and temporary discounts on some grocery items, suggesting shoppers may not have responded to earlier price boosts as management expected, the report said. Some stores had updated signage, while others rang up lower prices even when shelf labels still showed higher ones, Oppenheimer said.

Management may have raised prices too aggressively on certain items, though it's unclear whether the company is also passing tariff savings to customers, Oppenheimer said.

Dollar Tree is set to hold a conference call Thursday after fiscal Q1 results, and Oppenheimer said it will look for more detail on how much of the food assortment is now priced at $1.50 and how customers are reacting.

Oppenheimer maintained its perform rating on Dollar Tree stock and said that store conditions remain solid and merchandise selection continues to improve across most recent checks.

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