Dollar Tree (DLTR) reported earnings Tue 1 March 16 (b/o)

ticker:  DLTR

** charts before earnings **

 

** charts after earnings **

 

** 10 days later **

Dollar Tree misses by $0.06, misses on rev; guides Q1 in-line; guides FY17 EPS below consensus, revs in-line :

• Reports Q4 (Jan) earnings of $1.01 per share, excluding non-recurring items,$0.06 worse than the Capital IQ Consensus of $1.07; revenues rose 116.7% year/year to $5.37 bln vs the $5.4 bln Capital IQ Consensus. 
  • The increase was the result of $2.68 billion in sales from the Family Dollar segment and a same-store sales increase of 1.7% on a constant currency basis for the Dollar Tree segment. In comparison, same-store sales, on a constant currency basis, increased 5.6% in the prior-year period for the Dollar Tree segment. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 1.3%. The positive same-store sales were driven by increases in customer count and average ticket.
  • Gross margin decreased to 30.8% compared to 37.1% in the prior year. The primary contributors to the decrease were the impact of the overall lower-margin product mix for the Family Dollar business, $15.9 million for Family Dollar related to the amortization of the stepped up inventory basis, and $11.5 million of planned markdowns associated with rebannering Deals stores.
• Co issues in-line guidance for Q1, sees EPS of $0.75-0.83 vs. $0.80 Capital IQ Consensus; sees Q1 revs of $5.05-5.12 bln vs. $5.1 bln Capital IQ Consensus; low single digit comps. 
• Co issues guidance for FY17, sees EPS of $3.35-3.65 vs. $3.79 Capital IQ Consensus; sees FY17 revs of $20.76-21.11 bln vs. $20.95 bln Capital IQ Consensus; low single digit comps.