Who Had the Better Q2: Dollar General or Dollar Tree?
Both Dollar General and Dollar Tree announced their most recent quarterly reports on Thursday morning. The question is, which discount retailer had the better report?
Both Dollar General Corp. (NYSE: DG | DG Price Prediction) and Dollar Tree Inc. (NASDAQ: DLTR) announced their most recent quarterly reports on Thursday morning. Which discount retailer had the better report?
Dollar General said that it had $1.74 in earnings per share (EPS) and $7.0 billion in revenue in the fiscal second quarter. That compares with consensus estimates of $1.57 in EPS and $6.89 billion in revenue, as well as the $1.52 per share and $6.44 billion posted in the same period of last year.
During the latest quarter, Dollar General net sales increased 8.4% 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 4.0%, 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 $6.36 to $6.51 with net sales growing roughly 8%. Consensus estimates call for $6.47 in EPS and $27.52 billion in revenue.
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Dollar Tree reported its fiscal second-quarter results as $0.76 in EPS and $5.74 billion in revenue. Consensus estimates had called for $0.81 in EPS and revenue of $5.71 billion. The same period of last year reportedly had EPS of $1.15 on $5.53 billion in revenue.
Overall, enterprise same-store sales increased 2.4% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.4% and 2.4% in the Family Dollar segment.
For the fiscal full year, the company expects to see EPS in the range of $4.90 to $5.11 and revenue between $23.57 billion and $23.79 billion. Consensus estimates are calling for $5.32 in EPS and $23.64 billion in revenue.
Dollar Tree traded up about 2% at $101.35 per share early Thursday. The 52-week range is $78.78 to $113.38, and the consensus price target is $111.81.
Shares of Dollar General traded up about 10% to $155.08, in a 52-week range of $98.08 to $155.39. The stock had a consensus price target of just $142.23.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
