Free Post Earnings Research Report: Dollar Tree’s Net Sales Jumped 5%; Adjusted EPS Surged 21.4%

LONDON, UK / ACCESSWIRE / June 29, 2018 / If you want access to our free earnings report on Dollar Tree, Inc. (NASDAQ: DLTR), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DLTR. The Company reported its first quarter fiscal 2018 operating and financial results on May 31, 2018. The discount retailer provided guidance for the upcoming quarter and fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Dollar Tree most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Dollar Tree’s consolidated net sales increased 5.0% to $5.55 billion from $5.29 billion in Q1 2017. The Company’s revenue numbers missed analysts’ estimates of $5.56 billion.

During Q1 2018, Dollar Tree’s enterprise same-store sales increased 1.4%. The Company’s same-store sales for the Dollar Tree banner increased 4.0% on a constant currency basis, while its same-store sales for the Family Dollar banner fell 1.1%.

For Q1 2018, Dollar Tree’s gross profit increased 4.5% to $1.70 billion compared to $1.63 billion in Q1 2017. The Company’s gross margin as a percentage of sales decreased to 30.6% in the reported quarter compared to 30.8% in the prior year’s same quarter. The 20-basis point (bps) decline was primarily attributed to a higher shrink and to distribution and occupancy costs, partially offset by lower markdowns and lower merchandise costs.

Dollar Tree’s selling, general, and administrative expenses (SG&A) were 22.7% of sales in Q1 2018 compared to 23.4% of sales in Q1 2017. The Company’s results for the prior year included a receivable impairment of $50.9 million. Excluding the receivable impairment, Dollar Tree’s SG&A were 22.5% of sales in Q1 2017.

During Q1 2018, Dollar Tree’s operating income increased to $437.6 million compared to $388.8 million in Q1 2017. The Company’s operating income margin increased to 7.9% in the reported quarter from 7.4% in the prior year’s comparable quarter. The increase in operating margin was primarily due to the receivable impairment of $50.9 million recorded in the prior year’s first quarter. Excluding the receivable impairment, the Company’s operating income margin was 8.3% in Q1 2017.

Dollar Tree’s effective tax rate was 22.6% in Q1 2018 compared to 36.1% in Q1 2017. The decrease in rate was due to the Tax Cuts and Jobs Act (TCJA) signed into law on December 22, 2017, which lowered the federal corporate tax rate from 35% to 21% and made numerous other law changes effective January 01, 2018.

For Q1 2018, Dollar Tree reported a net income of $160.5 million, or $0.67 per diluted share, compared to $200.5 million, or $0.85 per diluted share, in Q1 2017. Excluding debt refinancing costs in the reported quarter and the receivable impairment from the prior year’s corresponding quarter, Dollar Tree’s adjusted earnings surged 21.4% to $1.19 per diluted share in Q1 2018 compared to $0.98 per diluted share in Q1 2017, but came in short of Wall Street’s estimates of $1.23 per diluted share.

Store Update

During Q1 2018, Dollar Tree opened 130 stores, expanded or relocated 26 stores, and closed 5 stores. The Company’s retail selling square footage was approximately 117.6 million square feet at the end of the quarter.

Company Outlook

For the second quarter of the fiscal year 2018, Dollar Tree is forecasting net sales to range from $5.47 billion to $5.57 billion, based on a low single-digit increase in same-store sales for the combined enterprise. The Company’s diluted earnings per share are estimated to be in the band of $1.07 to $1.16.

For the full fiscal year 2018, Dollar Tree is projecting net sales to be in the range of $22.73 billion to $23.05 billion compared to its previously expected range of $22.70 billion to $23.12 billion. This estimate is based on a low single-digit increase in same-store sales and square footage growth of 3.7%. The Company is estimating net income per diluted share to be in the band of $4.80 and $5.10 compared to its previously expected range of $5.25 to $5.60.

Stock Performance Snapshot

June 28, 2018 – At Thursday’s closing bell, Dollar Tree’s stock climbed 1.77%, ending the trading session at $85.01.

Volume traded for the day: 3.26 million shares, which was above the 3-month average volume of 2.97 million shares.

Stock performance in the past twelve-month period – up 21.49%

After yesterday’s close, Dollar Tree’s market cap was at $20.11 billion.

Price to Earnings (P/E) ratio was at 18.19.

The stock is part of the Services sector, categorized under the Discount, Variety Stores industry. This sector was up 0.4% at the end of the session.

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