Dollar Tree (DLTR) Tops Q1 EPS by 8c; Issued Mixed Outlook

Dollar Tree (NASDAQ: DLTR) reported Q1 EPS of $0.89, $0.08 better than the analyst estimate of $0.81. Revenue for the quarter came in at $5.09 billion versus the consensus estimate of $5.1 billion.

Same-store sales, on a constant currency basis, increased 3.4% in the prior-year period. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 2.2%.

Bob Sasser, Chief Executive Officer, stated, “I am very pleased with the Company’s performance in the first quarter. Through what continues to be a challenging economic environment, we delivered sales of $5.09 billion, which was the mid-point of our guidance range, and earnings that exceeded the high end of our guidance range. Additionally, while not included in our comp calculation, our Family Dollar segment delivered its third consecutive quarter of positive same-store sales.”

Sasser added, “We have gotten off to a successful start to 2016. We continue to serve a loyal customer base by providing terrific values every day; we remain on schedule with our integration of Family Dollar; we are on track to achieve our stated synergy targets; and we are part of what I consider, in this economic environment, the most attractive sector in retail. Looking ahead, we are committed to growing and improving our Dollar Tree and Family Dollar businesses to better serve more customers, while delivering long-term value to our shareholders.”

GUIDANCE:

Dollar Tree sees Q2 2016 EPS of $0.66-$0.72, versus the consensus of $0.75. Dollar Tree sees Q2 2016 revenue of $5.03-5.12 million, versus the consensus of $5.09 million. This is based on a low single-digit increase in same-store sales and year-over-year selling square footage growth of 2.4%.

Consolidated net sales for full-year 2016 are now expected to range between $20.79 billion and $21.08 billion compared to the Company’s previously expected range of $20.76 billion to $21.11 billion (consensus is $21.05 billion). This estimate is based on a low single-digit increase in same-store sales, and 4.0% square footage growth. The Company now anticipates net income per diluted share for full-year 2016 will range between $3.58 and $3.80. This compares to its previous EPS guidance range of $3.35 to $3.65 (consensus is $3.67).

For earnings history and earnings-related data on Dollar Tree (DLTR) click here.

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