Companies /Consumer Defensive

Dollar Tree Inc

NASDAQ: DLTR Discount Stores
$112.16
▼ $2.27 (−1.98%) today
Markets closed · 11:20am ET

Q3 2024 Earnings

Reported Dec 4, 2024, 6:31am ET · SEC source
$1.12
Beat +4.15%
EPS · est. $1.08 Adjusted

Adjusted EPS excludes $8.3 million in Family Dollar strategic review professional fees and $1.5 million in store closure costs ($9.8 million total pre-tax adjustments)

$7.6B
Beat +1.59%
Revenue · est. $7.4B
+4.7%
Beating market
DLTR vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%−6%−3%0Dec 4Dec 5report 6:31am ETearnings+0.4%−9.0%
−9%−6%−3%0Dec 4Dec 5earnings+0.4%−9.0%
DLTR −9.0%S&P 500 +0.4%
−8%−4%0Dec 4Dec 5report 6:31am ETearnings+0.7%−9.0%
−8%−4%0Dec 4Dec 5earnings+0.7%−9.0%
DLTR −9.0%NASDAQ +0.7%
−6%−3%0Dec 3Dec 11report 6:31am ETearnings+0.2%−6.7%
−6%−3%0Dec 3Dec 11earnings+0.2%−6.7%
DLTR −6.7%S&P 500 +0.2%
−6%−3%0Dec 3Dec 11report 6:31am ETearnings+1.7%−6.7%
−6%−3%0Dec 3Dec 11earnings+1.7%−6.7%
DLTR −6.7%NASDAQ +1.7%
+1.86%
Day of report
−1.72%
Next session
−2.98%
One week
+1.60%
30 days

S&P 500 over the same 30 days: −3.13%.

Did DLTR Beat Earnings? Q3 2024 Results

Dollar Tree delivered a stronger-than-expected third quarter, with adjusted diluted EPS of $1.12 beating the $1.08 consensus by 4.15% and revenue of $7.56 billion coming in 1.59% ahead of estimates, up 3.5% year-over-year. The key driver behind the earnings improvement was a 120-basis-point expansion in gross margin to 30.9%, fueled by lower freight costs and better shrink results, which helped lift adjusted EPS 15.5% from the year-ago period even as rising SG&A expenses, including costs tied to the ongoing Family Dollar strategic alternatives review, added pressure to the income statement. That review, which could result in a sale or spin-off of Family Dollar, continues with no set timeline, even as the company has now closed roughly 670 of the approximately 970 underperforming Family Dollar stores identified for closure. Looking ahead, Dollar Tree guided Q4 net sales of $8.10 billion to $8.30 billion and adjusted diluted EPS of $2.10 to $2.30, while the full-year outlook was narrowed to net sales of $30.70 billion to $30.90 billion with adjusted diluted EPS of $5.31 to $5.51.

Key Takeaways
  • Enterprise same-store sales increased 1.8%, driven by 1.6% traffic increase and 0.2% average ticket increase
  • Gross margin expanded 120 basis points to 30.9% from lower freight costs and improved shrink results
  • Dollar Tree same-store sales increased 1.8% driven by 1.5% traffic increase and 0.3% average ticket increase
  • Family Dollar same-store sales increased 1.9% driven by 1.8% traffic increase
  • Higher SG&A expenses from depreciation on store investments, strategic review fees, temporary labor for multi-price rollout, and higher utilities

“Our Dollar Tree and Family Dollar merchandising efforts produced tangible results, and our third quarter sales came in at the high-end of our expected range.”

Dollar Tree CEO, on the earnings call

Forward Guidance & Outlook

For Q4 fiscal 2024, the company expects consolidated net sales of $8.1 billion to $8.3 billion with low-single-digit comparable store sales growth for enterprise and both segments. Adjusted diluted EPS is expected to be $2.10 to $2.30. Full-year fiscal 2024 net sales outlook was updated to $30.7 billion to $30.9 billion with adjusted diluted EPS of $5.31 to $5.51. Share repurchases are not included in the outlook; approximately $952 million remains under the $2.5 billion authorization.

DLTR YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$3.0B$6.0B$7.3B$7.6BRevenue$2.2B$2.3BGross Profit$301.7M$333.4MOperating Income$212.0M$233.3MNet Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

DLTR Revenue by Segment

Dollar Tree$4.3B+8.3%
Family Dollar$3.2B−2.5%

Figures from SEC filings and company reports. Not investment advice.