Retail

Dollar Tree Trips Over Bottom Line on Earnings

Chris Lange

Published: November 24, 2015 8:42 am

Last Updated: January 13, 2020 4:50 pm

Dollar Tree, Inc. (NASDAQ: DLTR) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company had $0.49 in earnings per share (EPS) on $4.95 billion in revenue compared to consensus estimates from Thomson Reuters that call for $0.53 in EPS on $4.84 billion in revenue. The same period from the previous year had $0.69 in EPS on $2.10 billion in revenue.

In terms of guidance the company expects to have EPS in the range of $2.32 to $2.51 and net sales in the range of $5.32 billion to $5.42 billion for the fourth quarter. The consensus estimates call for $1.14 in EPS on $5.44 billion in revenue.

During the quarter, Dollar Tree opened 204 stores, expanded or relocated 63 stores and closed six stores. Additionally, as part of its re-banner initiative, the Company closed 167 Family Dollar stores and opened 143 Dollar Tree stores during the quarter.

Bob Sasser, CEO of Dollar Tree, commented on earnings:

I am pleased with our company’s third quarter performance. Dollar Tree delivered same-store sales of 2.1%, which represented our 31st consecutive quarter of positive same-store sales. This was against a 5.9% comp from the prior year, our strongest quarter of 2014. While not included in our comp calculation, Family Dollar delivered positive same-store sales of low to mid-single-digits, as a percent, each month during the quarter.

He added:

Our integration project is on schedule and we are on track to achieve our stated synergy goals. Today, I am even more enthusiastic about the long-term opportunity this merger provides for our customers, our suppliers, our associates, and our shareholders. As we entered the fourth quarter, both Dollar Tree and Family Dollar stores were well-stocked and prepared for the upcoming holiday season.

On the books the company had $1.11 billion in cash, equivalents, and short-term investments compared to $407.6 million in the same period from the previous year.

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Shares of Dollar Tree closed Monday up 1.7% at $69.55, with a consensus analyst price target of $80.44 and a 52-week trading range of $60.31 to $84.22. Following the release of the earnings report, the stock was down 1.8% at $68.30 in early trading indications Tuesday.