Dollar Tree (DLTR) Tops Q4 EPS by 1c, Revenues Beat; Q1 & FY19 EPS Guidance Below Consensus, FY19 Revenue Guidance Above Consensus
Dollar Tree (NASDAQ: DLTR) reported Q4 EPS of $1.93, $0.01 better than the analyst estimate of $1.92. Revenue for the quarter came in at $6.21 billion versus the consensus estimate of $6.19 billion.
- Consolidated Sales of $6.21 Billion; Enterprise Same-Store Sales Increased 2.4%
- Same-Store Sales by Segment: Dollar Tree +3.2%, Family Dollar +1.4%
- Accelerates Plans for Improving Family Dollar Performance; Takes Non-Cash Charge against Acquisition Goodwill
- Plans New Round of Testing of Multi-Price Points at Select Dollar Tree Stores While Reiterating Brand’s Value Commitment to Core Customer Base
“Sales for the quarter were strong,” stated Gary Philbin, President and Chief Executive Officer. “Our results demonstrate the increasing strength of the Dollar Tree brand, and accelerated progress on the Family Dollar turnaround, as Family Dollar delivered its strongest quarterly same-store sales growth of the year.”
Philbin continued, “We are confident in our progress and we have good momentum. Our merchants at both banners have delivered a 2019 plan that we believe overcomes most of the effect of tariffs at the 25% level, and provides opportunity for margin improvements if tariffs are not increased. We moved aggressively in the fourth quarter to optimize Family Dollar’s performance, including closing 84 stores and announcing plans to renovate at least 1,000 stores in 2019. The renovated stores will include new $1.00 Dollar Tree merchandise sections. Approximately 200 Family Dollar stores will be re-bannered to Dollar Tree, and we plan to close as many as 390 Family Dollar stores this year. We also recorded an inventory reserve in part because of the different inventory needs of this new optimized store base. Excluding this markdown and the non-cash goodwill impairment charge related to Family Dollar, the combined companies performed well in the quarter.”
GUIDANCE:
Dollar Tree sees FY2019 EPS of $4.85-$5.25, versus the consensus of $5.46. Dollar Tree sees FY2019 revenue of $23.45-23.87 billion, versus the consensus of $22.85 billion.
Dollar Tree sees Q1 2019 EPS of $1.05-$1.15, versus the consensus of $1.30. Dollar Tree sees Q1 2019 revenue of $5.74-5.85 billion, versus the consensus of $5.81 billion.
For earnings history and earnings-related data on Dollar Tree (DLTR) click here.