Dollar Tree falls short in Q4
Dollar Tree on Wednesday reported increases in its sales and profit for the fourth quarter, but its results missed Street expectations.
The discounter’s net income more than tripled to $1.04 billion, or $4.37 a share, for the quarter ended Feb. 3, from $321.8 million, or $1.36 a share, in the year-ago period, boosted by a $562 million non-cash benefit related to the recent tax overhaul. Adjusted earnings per share came to $1.89, one penney short of analysts’ estimates of $1.90.
Net sales rose 12.9% to $6.36 billion, just missing Street estimates of $6.40 billion. Same-store sales rose 2.4%. Adjusted same-store sales rose 2.5%, lower than analysts had expected.
Dollar Tree said its same-store sales growth was driven by increases in average ticket and comparable transaction count. Same-store sales for the Dollar Tree banner increased 3.8% on a constant currency basis and 1.0% at Family Dollar.
Adjusted same-store sales increased 2.5%, helped by increases in average ticket and transaction count.
“For the quarter, we posted positive same-store sales in our Dollar Tree and Family Dollar banners, while improving gross margin and leveraging costs,” said Gary Philbin, president and CEO. “For the year, we opened 603 new stores, exceeded $22 billion in sales and improved our operating margin by 80 basis points.”
Dollar Tree said it expects to continue benefiting from last year’s tax reform in the year ahead. It expects to use some of the gains to raise hourly wages, boost retirement plan offerings and establish a paid maternity leave benefit.
For fiscal 2018, Dollar Tree estimates consolidated net sales will range from $22.70 billion to $23.12 billion, based on a low single-digit increase in same-store sales and 3.7% square footage growth. Fiscal 2018 diluted earnings per share are expected to range from $5.25 to $5.60.
The discounter’s net income more than tripled to $1.04 billion, or $4.37 a share, for the quarter ended Feb. 3, from $321.8 million, or $1.36 a share, in the year-ago period, boosted by a $562 million non-cash benefit related to the recent tax overhaul. Adjusted earnings per share came to $1.89, one penney short of analysts’ estimates of $1.90.
Net sales rose 12.9% to $6.36 billion, just missing Street estimates of $6.40 billion. Same-store sales rose 2.4%. Adjusted same-store sales rose 2.5%, lower than analysts had expected.
Dollar Tree said its same-store sales growth was driven by increases in average ticket and comparable transaction count. Same-store sales for the Dollar Tree banner increased 3.8% on a constant currency basis and 1.0% at Family Dollar.
Adjusted same-store sales increased 2.5%, helped by increases in average ticket and transaction count.
“For the quarter, we posted positive same-store sales in our Dollar Tree and Family Dollar banners, while improving gross margin and leveraging costs,” said Gary Philbin, president and CEO. “For the year, we opened 603 new stores, exceeded $22 billion in sales and improved our operating margin by 80 basis points.”
Dollar Tree said it expects to continue benefiting from last year’s tax reform in the year ahead. It expects to use some of the gains to raise hourly wages, boost retirement plan offerings and establish a paid maternity leave benefit.
For fiscal 2018, Dollar Tree estimates consolidated net sales will range from $22.70 billion to $23.12 billion, based on a low single-digit increase in same-store sales and 3.7% square footage growth. Fiscal 2018 diluted earnings per share are expected to range from $5.25 to $5.60.