Dollar Tree (DLTR) Tops Q4 Earnings Forecast, Misses on Revenues
By: TheStreet | March 3, 2021
• Discount retailer Dollar Tree topped Street earnings forecast for the holiday quarter and boosted its share buyback program by $2 billion.
Dollar Tree Inc. (DLTR) posted stronger-than-expected fourth-quarter earnings Wednesday but narrowly missed revenue forecasts, sending its shares lower in pre-market trading.
Dollar Tree said diluted earnings for the three months ending on February 1 came in at $2.13 per share, up 19% from the same period last year and 2 cents ahead of the Street consensus forecast. Group revenues, Dollar Tree said, rose 7.1% to $6.77 billion, just shy of analysts' estimates of a $6.875 billion tally
Same-store sales rose by a forecast-matching 4.9%, Dollar Tree said, with comparable sales at Family Dollar rising 8.1%.
“I am very pleased with the team’s operating performance for the fourth quarter, highlighted by a solid same-store sales increase, improved gross margin and expense leverage,” said CEO Michael Witynski. “Furthermore, Dollar Tree has completed the rollout of the expanded Crafter’s Square assortment to all U.S. stores and has begun the expansion of our Dollar Tree Plus! initiative to a total of 500 stores, as announced last quarter."
"At Family Dollar, we have partnered nationally with Instacart, are continuing to see strong results from our H2 stores, and we are thrilled to introduce a new Combination Store format that performed extremely well in nearly 50 small towns and rural communities during fiscal 2020,” he added.
Dollar Tree shares were marked 1% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $97.95 each.
U.S. retail sales soared past Wall Street forecasts, rising 5.3% from last year to a collective $568.2 billion for the month of January as consumers snapped-up post-holiday deals with government stimulus checks and revived market concerns for faster near-term inflation. Read Full Story »»» DiscoverGold