Dollar Tree (NASDAQ: DLTR) reported Q1 EPS of $1.60, $0.23 better than the analyst estimate of $1.37. Revenue for the quarter came in at $6.48 billion versus the consensus estimate of $6.38 billion.

GUIDANCE:

Dollar Tree sees FY2021 EPS of $5.80-$6.05, versus the consensus of $6.24.

• For full-year fiscal 2021, the Company estimates diluted earnings per share will range between $5.80 and $6.05. This estimate assumes a consolidated comparable store net sales increase in the low single digits. Freight costs in the last three quarters of fiscal 2021 are projected to be $0.70 to $0.80 higher than the comparable period in fiscal 2020, expressed in terms of the impact on diluted earnings per share. The current freight cost projection is significantly higher than it was a quarter ago. However, the disruption in shipping is not expected to be permanent.
• Outstanding debt, as of May 1, was $3.25 billion. The Company ended the quarter with approximately $1.5 billion in cash and cash equivalents on its balance sheet and reiterates its expected capital expenditures for fiscal 2021 will total approximately $1.2 billion. A majority of the excess cash flow generated may be dedicated to share repurchases under the Company’s current $2.15 billion remaining on its authorization.
• For fiscal 2021, the Company reiterates its plan to open 600 new stores and to renovate 1,250 Family Dollar stores. The new stores are expected to consist of 400 Dollar Tree stores and 200 Family Dollar stores. The Family Dollar stores will be comprised of H2 and Combo Store formats, based upon market locations.
• “Looking forward, I am most excited about the growth of Dollar Tree Plus! and our strategic store formats, which shoppers are responding to favorably, as evidenced by market share gains and improved customer satisfaction scores. These offerings, along with other key sales- and traffic-driving initiatives and a robust balance sheet, gives us confidence that we have increased the long-term earnings potential for both banners,” Witynski concluded. “As always, our teams are working hard to adapt and react to navigate the business based on the current environment. I am extremely proud of their commitment, dedication and focus to delivering value and convenience to millions of households across North America.”

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