==Dollar Tree (DLTR) reported earnings on Wed 4 Sept 24 (b/o)

 

 

 

Dollar Tree misses by $0.37, misses on revs; guides Q3 EPS below consensus, revs in-line; guides FY25 EPS below consensus, revs below consensus

• Reports Q2 (Jul) earnings of $0.67 per share, excluding non-recurring items, $0.37 worse than the FactSet Consensus of $1.04; revenues rose 0.7% year/year to $7.37 bln vs the $7.49 bln FactSet Consensus.
  • Same-Store Net Sales: Dollar Tree +1.3%; Family Dollar -0.1%; Enterprise +0.7%
• Co issues guidance for Q3, sees EPS of $1.05-1.15 vs. $1.32 FactSet Consensus; sees Q3 revs of $7.4-7.6 bln vs. $7.58 bln FactSet Consensus.
• Co issues downside guidance for FY25, sees EPS of $5.20-5.60 vs. $6.56 FactSet Consensus; sees FY25 revs of $30.6-30.9 bln vs. $31.17 bln FactSet Consensus.
• Strategic Alternatives Review Update
  • "During the second quarter of fiscal 2024, we announced that we had initiated a formal review of strategic alternatives for the Family Dollar business segment, which could include among others, a potential sale, spin-off, or other disposition of the business. There is not a set deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome."
• Tornado Damage Update
  • "On April 28, 2024, a tornado destroyed our Dollar Tree distribution center in Marietta, Oklahoma. Based on the significant damage sustained by the facility, the inventory contained in the facility and the facility itself are not salvageable. We incurred losses totaling $117.0 million in the first quarter of fiscal 2024, consisting of $70.0 million related to damaged inventory and $47.0 million related to property and equipment. These losses were fully offset by insurance receivables. As of August 3, 2024, we have received insurance proceeds totaling $70.8 million, including $45.0 million related to damaged inventory and $25.8 million related to damaged property and equipment. We expect that the remaining inventory losses and property and equipment losses will be fully offset by insurance recoveries under our distribution center insurance policies."