Dollar Tree | $DTLR Stock | Shares Plunge on Earnings Miss & Weak Guidance

Dollar Tree

Dollar Tree Inc (NASDAQ: DTLR)


Shares of Dollar Tree Inc dipped after posting second-quarter earnings and revenue that were below Wall Street expectations.

The Nasdaq listed company also lowered its earnings and revenue projection for the full year. Shares lost $12.89, or 13.65% during the regular trading session on Thursday following the dismal report.

DLTR Earnings & Outlook

Dollar Tree

The company posted adjusted earnings per share of $1.15 narrowly missing analyst estimates of $1.16. Dollar Tree reported adjusted earnings per share of $0.99 in the year-ago period.

Looking ahead, the retailer expects to post earnings in the range of $1.11 to $1.18 per share for the third quarter. The current analyst earnings estimate for the current quarter is $1.16 per share.

Dollar Tree now sees full year earnings in the range of $4.05 to $5.05 per share from the previous range of $4.80 to $5.10. The current consensus earnings per-share estimate for the full year is $5.55.

Revenue increased to $5.525 billion during the quarter, from $5.281 billion in the year-ago period but failed to beat estimate of $5.536 billion. The company projects third-quarter sales in the range of $5.53 billion to $5.64 billion compared to the consensus estimate of $5.58 million.

For the full year, it expects to post revenue of $22.75 billion to $22.97 billion from the earlier projection of $22.73 billion to $23.05 billion. The current analyst revenue estimate for the full year is $22.91 billion.

Dollar Tree CEO Comments

Dollar Tree President and Chief Executive Officer Gary Philbin said, “I am proud of our team’s accomplishments in the second quarter. In addition to posting earnings near the top end of our guidance range, our Dollar Tree banner delivered increases in both traffic and ticket, and our Family Dollar banner’s same-store sales were flat compared to last year’s 1% increase. Importantly, Family Dollar’s consumables business was positive for the seventh consecutive quarter.”

“Dollar Tree’s 3.7% comp was on top of last year’s 3.9% increase; and represented the fifth consecutive quarter of same-store sales growth exceeding 3.5%. We also celebrated the grand opening of our 15,000 [th] store, and the opening of our 23 [rd] U.S. distribution center. Both of these milestones call out the continued opportunities for growth across North America for our Dollar Tree and Family Dollar banners,” Mr. Philbin concluded.

Dollar Tree Inc. Company Profile

Dollar Tree, Inc. owns and operates discount variety stores offering merchandise at the fixed prices. It operates stores under the names Dollar Tree, Deal, Dollar Tree Deal, Dollar Giant and Dollar Bills. The company offers selection of everyday basic products and its supplement these basic, everyday items with seasonal, closeout and promotional merchandise.

The merchandise mix consists of three types: Consumable, Variety categories and Seasonal merchandise. The Consumable merchandise includes candy and food, health and beauty care, and household consumables such as paper, plastics and household chemicals and in select stores, frozen and refrigerated food.

The Variety categories merchandise includes toys, durable house wares, gifts, party goods, greeting cards, soft lines and other items. The Seasonal goods include Easter, Halloween and Christmas merchandise. Dollar Tree was founded by J. Douglas Perry and Macon F. Brock, Jr. in 1986 and is headquartered in Chesapeake, Virginia. –CNNMoney