- Adjusted EPS for Dollar Tree was $1.43, missing the estimate of $1.44, and lower than last year’s $1.47.
- Reported EPS was $1.38, up from $1.35 last year.
- Enterprise comparable sales increased by 1%, compared to 4.8% last year; the estimate was 2.33%.
- Family Dollar’s comparable sales remained almost flat at 0.1%, compared to a 6.6% increase last year, meeting the estimate of 0.1%.
- Dollar Tree segment comparable sales grew by 1.7%, down from 3.4% last year, and below the estimate of 4.39%.
- Net sales reached $7.63 billion, an increase of 4.2% year-over-year.
- Dollar Tree net sales were $4.17 billion, up 5.9% year-over-year, but below the estimate of $4.24 billion.
- Family Dollar net sales came in at $3.46 billion, a rise of 2.2% year-over-year, beating the estimate of $3.39 billion.
- Gross profit margin was 30.8%, slightly up from 30.5% last year, meeting the estimate of 30.8%.
- Dollar Tree gross margin was 35.4%, marginally better than last year’s 35.3%, but short of the estimated 35.7%.
- Total store count was 16,397, slightly down by 0.1% year-over-year, missing the estimate of 16,613.
- Dollar Tree locations numbered 8,520, an increase of 4.5% year-over-year, surpassing the estimate of 8,378.
- Family Dollar locations were 7,877, a decrease of 4.7% year-over-year, below the estimate of 8,215.
- Fiscal 2024 adjusted diluted EPS outlook is between $6.50 and $7.00.
- The company reaffirmed its full-year fiscal 2024 consolidated net sales outlook of $31.0 billion to $32.0 billion.
- Chief Financial Officer Jeff Davis commented on the solid operating performance despite a soft Easter season for Dollar Tree.
- Davis also noted that the results reflect strong operating discipline and careful expense management.
- Analyst ratings include 17 buys, 10 holds, and 2 sells.
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Dollar Tree Inc on Smartkarma
Analysts on Smartkarma like Baptista Research have been closely following Dollar Tree Inc. Recent reports, such as “Dollar Tree: How Long Will The Family Dollar Underperformance Continue? – Major Drivers,” highlight the company’s progress in its transformation towards sustainable growth. Dollar Tree’s latest quarterly earnings showed positive momentum with growth in retail metrics like sales per square foot and transactions. The company reported a 12% increase in consolidated net sales to $8.6 billion in the fourth quarter of 2023, including a $560 million benefit from the year’s 53rd week.
Another report by Baptista Research, titled “Dollar Tree Inc.: Can They Survive Amidst The Economic Turmoil? – Major Drivers,” mentioned that Dollar Tree faced challenges in meeting revenue and earnings expectations. However, the company demonstrated resilience in a tough retail environment, especially for lower-income consumers dealing with inflation and reduced government benefits. Dollar Tree’s strategic initiatives, including a multi-price journey at Dollar Tree and planogram resets at Family Dollar, aim to enhance product offerings and navigate the economic challenges ahead.
A look at Dollar Tree Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Dollar Tree Inc has a mixed long-term outlook. The company scores well in terms of value and momentum, indicating good value compared to its price and positive market momentum. However, it has lower scores for dividend, growth, and resilience factors. This suggests that while Dollar Tree Inc may offer value for investors and is showing positive market momentum, there may be concerns regarding its dividend, growth potential, and resilience in challenging economic conditions.
Dollar Tree, Inc., known for its discount variety stores in the United States offering general merchandise at $1.00 price point, faces a somewhat uncertain long-term outlook based on its Smartkarma Smart Scores. With a mix of scores across different factors, investors may need to carefully assess the company’s prospects and consider the balance between its value and growth potential alongside its capacity to withstand market fluctuations.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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