Dollar General vs. Dollar Tree: Which Had the Better Q1?

Both Dollar General Corp. (NYSE: DG) 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 $2.56 in earnings per share (EPS) and $8.45 billion in revenue in its fiscal first quarter. That topped consensus estimates of $1.70 in EPS and $7.4 billion in revenue, as well as the $1.48 per share and $6.62 billion posted in the same period of last year.

During the latest quarter, Dollar General net sales increased 27.6% 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 21.7%, due to increases in both average transaction amount and customer traffic.

Dollar Tree reported its fiscal first-quarter results as $1.04 in EPS and $6.29 billion in revenue. Consensus estimates had called for EPS of $0.91 and revenue of $6.11 billion. The same period of last year reportedly had EPS of $1.14 on $5.78 billion in revenue.

Overall, enterprise same-store sales increased 7.0% year over year. This consisted of same-store sales growth of 15.5% in the Family Dollar segment and a same-store sales decrease of 0.9% in the Dollar Tree segment.

Dollar General stock was relatively flat at $187.11 Thursday morning, in a 52-week range of $122.77 to $188.83. The consensus price target is just $177.52.

Dollar Tree stock traded up more than 13% at $99.04 per share. The 52-week range is $60.20 to $119.71, and the consensus price target is $89.09.