Dollar Tree (DLTR) reported earnings on Wed 13 March 24 (b/o)

• The company also announced it was closing 1,000 stores: 600 Family Dollar locations in the first half of fiscal 2024 and an additional 370 Family Dollar locations and 30 Dollar Tree stores as their leases expire in the coming years.
• ticker:  DLTR
  

** charts after earnings **

 

 

 

 

Dollar Tree misses by $0.12, reports revs in-line; guides Q1 EPS below consensus, revs in-line; guides FY25 EPS in-line, revs in-line 

• Reports Q4 (Jan) earnings of $2.55 per share, excluding non-recurring items, $0.12 worse than the FactSet Consensus of $2.67; revenues rose 11.9% year/year to $8.63 bln vs the $8.66 bln FactSet Consensus.
  • Enterprise same-store net sales increased +3.0% (generally in-line with prior guidance of low single digit growth), driven by a +4.6% increase in traffic, partially offset by a -1.5% decline in average ticket.
    • Dollar Tree segment comps +6.3% (vs mid-single digit prior guidance), driven by a +7.1% increase in traffic, partially offset by a -0.7% decline in average ticket.
    • Family Dollar segment comps decreased -1.2% (below -1% to +1% prior guidance), driven by a +0.7% increase in traffic, partially offset by a -2.0% decline in average ticket.
• Co issues guidance for Q1 (Apr), sees EPS of $1.33-1.48 vs. $1.71 FactSet Consensus; sees Q1 revs of $7.6-7.9 bln vs. $7.68 bln FactSet Consensus.
  • Guidance based on a low-to-mid-single digit increase in same-store sales for the enterprise and the Dollar Tree segment and approximately flat same-store sales growth for the Family Dollar segment.
• Co issues in-line guidance for FY25, sees EPS of $6.70-7.30 vs. $7.04 FactSet Consensus; sees FY25 revs of $31.0-32.0 bln vs. $31.72 bln FactSet Consensus.
  • The Company expects to deliver a low-to-mid-single digit comparable store net sales increase for the year, comprised of a mid-single-digit increase in the Dollar Tree segment and a low-single-digit increase in the Family Dollar segment.