Dollar Tree reports same-store sales increase for quarter results
Dollar Tree narrowly missed earnings estimates for the second quarter as it continues to work to turnaround its Family Dollar business.
The discounter reported net income of $273.9 million, or $1.15 a share, in the quarter ended Aug.4, up from $233.8 million, or 98 cents a share, in the year-earlier period. Analysts had expected earnings per share of $1.16
Sales rose 4.6% to $5.53 billion from $5.28 billion. Same-store sales rose 1.8%, in line with estimates. Same-store sales were flat at Family Dollar and rose 3.7% at Dollar Tree, the banner’s fifth consecutive quarter of same-store sales growth exceeding 3.5%.
“Our Dollar Tree banner continues to perform at a high level and the impact of our initiatives continue to drive top line revenue,” said Gary Philbin, president and CEO. “Our efforts at Family Dollar continue to focus around delivering a better shopping experience, and we are pleased with the results of our renovation program to date. Our customers are responding to the assortment and layout and we expect to exceed our store renovations target for this fiscal year.”
The retailer said it now expects third-quarter earnings per share of $1.11 to $1.18 on sales of $5.53 billion to $5.64 billion. Analysts had forecast earnings per share of $1.16 and sales of $5.58 billion.
For the full year, it now expects sales of $22.75 billion to $22.97 billion, compared with a previous range of $22.73 billion to $23.05 billion. Earnings per share are expected to range from $4.85 to $5.05, compared with a prior range of $4.80 to $5.10. Analysts had forecast earnings per share of $5.55 and sales of $22.91 billion.
The discounter reported net income of $273.9 million, or $1.15 a share, in the quarter ended Aug.4, up from $233.8 million, or 98 cents a share, in the year-earlier period. Analysts had expected earnings per share of $1.16
Sales rose 4.6% to $5.53 billion from $5.28 billion. Same-store sales rose 1.8%, in line with estimates. Same-store sales were flat at Family Dollar and rose 3.7% at Dollar Tree, the banner’s fifth consecutive quarter of same-store sales growth exceeding 3.5%.
“Our Dollar Tree banner continues to perform at a high level and the impact of our initiatives continue to drive top line revenue,” said Gary Philbin, president and CEO. “Our efforts at Family Dollar continue to focus around delivering a better shopping experience, and we are pleased with the results of our renovation program to date. Our customers are responding to the assortment and layout and we expect to exceed our store renovations target for this fiscal year.”
The retailer said it now expects third-quarter earnings per share of $1.11 to $1.18 on sales of $5.53 billion to $5.64 billion. Analysts had forecast earnings per share of $1.16 and sales of $5.58 billion.
For the full year, it now expects sales of $22.75 billion to $22.97 billion, compared with a previous range of $22.73 billion to $23.05 billion. Earnings per share are expected to range from $4.85 to $5.05, compared with a prior range of $4.80 to $5.10. Analysts had forecast earnings per share of $5.55 and sales of $22.91 billion.