Dollar Tree (NASDAQ: DLTR) reported Q3 EPS of $1.20, $0.02 better than the analyst estimate of $1.18. Revenue for the quarter came in at $6.94 billion versus the consensus estimate of $6.84 billion.

GUIDANCE:

Dollar Tree sees FY2023 revenue of $28.14-28.28 billion, versus the consensus of $28.08 billion.

Dollar Tree sees Q4 2023 revenue of $7.54-7.68 billion, versus the consensus of $7.52 billion.

• “We are increasing our sales outlook for the year. The efforts to evolve the assortment to drive consumables performance at Dollar Tree, combined with initiatives designed to improve the value proposition at Family Dollar, are working. We believe we will continue to be part of the solution to millions of households seeking value at a time when they need us most,” Mike concluded. “I am extremely confident in the new leadership team we have in place. We are eager to share more details about the opportunity ahead of us, and the path to get there, in the months ahead. We are focused and energized and believe we are very well-positioned to deliver long-term profitable growth.”
• Consolidated net sales for the year are now expected to range from $28.14 billion to $28.28 billion, compared to the previous outlook range of $27.85 billion to $28.10 billion. The Company expects to deliver a mid-single-digit comparable store sales increase for the year, comprised of a high single-digit increase in the Dollar Tree segment and a low-single-digit increase in the Family Dollar segment. In the fourth quarter, the Company will anniversary more than 5,000 Dollar Tree stores that transitioned to the $1.25 primary price point a year ago. Selling square footage is expected to grow by approximately 2.8% for the year.
• Diluted earnings per share for fiscal 2022 are expected to be in the lower half of the Company’s previously provided outlook range of $7.10 to $7.40. Sales trends at both banners continue to be strong, while the continued strength of consumable sales is expected to pressure near-term margins. Additionally, the Company continues to experience inflationary cost pressures.
• The Company expects consolidated net sales for the fourth quarter of 2022 will range from $7.54 billion to $7.68 billion, based on a mid- to high-single-digit increase in same-store sales for the enterprise.
• While share repurchases are not included in the outlook, the Company had $1.85 billion remaining under its share repurchase authorization as of October 29, 2022.

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