Dollar General or Dollar Tree: Who Had the Better Q1 Report?

Chris Lange

Both Dollar General Corp. (NYSE: DG) and Dollar Tree Inc. (NASDAQ: DLTR) announced their most recent quarterly reports on Thursday morning. The question is which discount retailer had the better report?

Dollar General said that it had $1.48 in earnings per share (EPS) and $6.62 billion in revenue in the fiscal first quarter. That compared with consensus estimates of $1.39 in EPS and $6.56 billion in revenue, as well as the $1.36 per share and $6.11 billion posted the same period of last year.

During the latest quarter, Dollar General net sales increased 8.3% year over year. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

At the same time, same-store sales increased 3.8%, due to increases in both average transaction amount and customer traffic.

Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $6.30 to $6.50 with net sales growing roughly 7%. Consensus estimates call for $6.42 in EPS and $27.47 billion in revenue.

Shares of Dollar General traded up more than 6% early Thursday at $126.05, in a 52-week range of $86.87 to $126.84. The stock had a consensus price target of just $125.54.

Dollar Tree reported its fiscal first-quarter results as $1.14 in EPS and $5.81 billion in revenue. Consensus estimates had called for $1.14 in EPS and revenue of $5.79 billion. The same period of last year reportedly had EPS of $1.19 on $5.55 billion in revenue.

Overall enterprise same-store sales increased 2.2% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.5% and 1.9% in the Family Dollar segment.

For the fiscal full year, the company expects to see EPS in the range of $4.77 to $5.07 and revenue between $23.51 billion and $23.83 billion. Consensus estimates are calling for $5.32 in EPS and $23.64 billion in revenue.

Dollar Tree traded at $98.87 per share early Thursday, or up more than 3%. The 52-week range is $78.78 to $111.61, and the consensus price target is $111.40.