=Dollar Tree (DLTR) reported earnings on Thur 31 May 2018 (b/o)

ticker:  DLTR

Dollar Tree misses by $0.04, reports revs in-line; guides Q2 EPS below consensus, revs in-line; lowers FY19 EPS below consensus, reaffirms comps 

• Reports Q1 (Apr) earnings of $1.19 per share (ex-$0.52/share in debt refinancing costs), $0.04 worse than the Capital IQ Consensus of $1.23; revenues rose 5.0% year/year to $5.55 bln vs the $5.56 bln Capital IQ Consensus. Enterprise same-store sales increased 1.4% vs low-single digit guidance. Same-store sales for the Dollar Tree banner increased 4.0% on a constant currency basis (or 4.1% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for the Family Dollar banner decreased 1.1%.
• Gross margin decreased to 30.6% compared to 30.8% in the prior year. The 20 basis point decline was driven primarily by higher shrink, distribution and occupancy costs, partially offset by lower markdowns and lower merchandise costs.
• Co issues guidancefor Q2, sees EPS of $1.07-1.16 vs. $1.18 Capital IQ Consensus Estimate; sees Q2 revs of $5.47-5.57 bln vs. $5.56 bln Capital IQ Consensus Estimate.
• Co issues guidancefor FY19, lowers EPS to $5.32-5.62 (ex-$0.52/share in costs from Q1 debt refinancing) from $5.25-5.60 vs. $5.64 Capital IQ Consensus Estimate; sees FY19 revs of $22.73-23.05 bln vs. $22.97 bln Capital IQ Consensus Estimate; reaffirms comps +low single digits.
• "We are pleased with the acceleration in sales we have seen in the first several weeks of our second quarter."