- Adjusted EPS for Q2 stood at 67 cents, significantly lower than the estimated $1.05 and the previous year’s 91 cents.
- Reported EPS was 62 cents, also down from last year’s 91 cents.
- Enterprise comparable sales increased by 0.7%, falling short of the estimated 1.45% and last year’s 6.9% growth.
- Family Dollar’s comparable sales marginally declined by 0.1%, slightly better than the forecasted -0.21%.
- Dollar Tree segment’s comparable sales rose by 1.3%, below the anticipated 2.89% and last year’s 7.8% growth.
- Net sales reached $7.37 billion, a modest 0.7% increase year-over-year (y/y).
- Dollar Tree’s net sales were $4.07 billion, up by 5% y/y but falling short of the $4.16 billion estimate.
- Family Dollar’s net sales were $3.31 billion, a drop of 4% y/y and below the $3.35 billion estimate.
- Gross profit margin improved to 30% from 29.2% y/y, slightly above the 29.9% estimate.
- Dollar Tree’s gross margin rose to 34.2%, surpassing last year’s 33.4% and the estimate of 34.1%.
- Total location count is 16,388, a 0.5% decrease y/y, but slightly above the estimated 16,374.
- Dollar Tree locations increased by 5.5% y/y to 8,627, exceeding the estimate of 8,294.
- Family Dollar locations decreased by 6.5% y/y to 7,761, missing the estimate of 8,071.
- Analyst ratings include 15 buys, 12 holds, and 1 sell.
Dollar Tree Inc on Smartkarma
Analyst coverage of Dollar Tree Inc on Smartkarma by Baptista Research has revealed positive sentiments and key insights. In the report “Dollar Tree Inc.: Expanding Multi-Price Offering To Catalyze Top-line Growth! – Major Drivers,” Dollar Tree’s first quarter fiscal 2024 results showed an increase in net sales and strategic evaluation of its Family Dollar segment, with a focus on potential separation to optimize operations.
Another report, “Dollar Tree Inc.: E-commerce & Digital Experience Optimization & Other Major Drivers,” highlighted Dollar Tree’s proactive steps toward aggressive growth, including acquisitions and strategic reshaping to focus on profitable ventures. In the report “Dollar Tree: How Long Will The Family Dollar Underperformance Continue? – Major Drivers,” Dollar Tree’s progress in organizational transformation for sustainable growth was noted, with positive metrics such as sales per square foot and consolidated net sales increase. Overall, the analyst coverage suggests a favorable outlook for Dollar Tree’s future prospects.
A look at Dollar Tree Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.0 |
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 the Smartkarma Smart Scores analysis, Dollar Tree Inc has a mid-range Value score of 3, indicating a fair valuation compared to its industry peers. However, its Dividend score is low at 1, which suggests that the company may not be an attractive option for income-focused investors seeking regular dividend payouts. The Growth score of 2 reflects moderate growth prospects for Dollar Tree Inc, signaling potential room for improvement in expanding its business operations. Additionally, the Resilience score of 2 highlights the company’s average ability to weather economic downturns and market fluctuations. The Momentum score of 2 indicates a neutral stance regarding the stock’s recent performance and market sentiment.
Dollar Tree Inc, an operator of discount variety stores in the US, focuses on offering a wide range of everyday general merchandise priced at $1.00. With a mix of average to below-average Smartkarma Smart Scores across different factors, Dollar Tree Inc appears to have room for enhancement in areas such as dividend distribution, growth strategies, and market momentum. Investors may find the company’s valuation fair but should carefully consider its dividend policy and growth potential when assessing long-term investment opportunities.
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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