Categories Analysis, Retail

Dollar Tree (DLTR) vs. Dollar General (DG): A look at how these discount stores fared in their recent quarters

Dollar Tree expects consolidated net sales for the first quarter of 2023 to range between $7.2-7.4 billion

Dollar Tree, Inc. (NASDAQ: DLTR) and Dollar General Corporation (NYSE: DG) both reported their fourth quarter 2022 earnings results this month. The current inflationary environment benefits discount stores as customers look for more value in their purchases. Here’s a look at how these two fared in the most recent quarter:

Revenue and comps

Dollar Tree’s consolidated net sales increased 9% year-over-year to $7.72 billion in Q4 2022 while enterprise same-store sales rose 7.4%. Dollar General posted net sales of $10.2 billion in Q4, up 18% from last year, driven by positive sales contributions from new stores and growth in same-store sales. DG’s sales growth was partly offset by store closures. Its same-store sales increased 5.7% in Q4, driven by an increase in average transaction amount, but partly offset by a slight decrease in customer traffic.

Profits

Dollar Tree reported net income of $452.2 million, or $2.04 per share, in Q4 2022 compared to $454.2 million, or $2.01 per share, in the same period last year. Dollar General’s net income increased 10.3% to $659.1 million while its EPS rose 15.2% to $2.96 in Q4 versus last year.

Category performance

In Q4, Dollar Tree reported an 8% growth in net sales for its namesake banner along with a 10% sales growth in its Family Dollar segment. Same-store sales for the Dollar Tree segment increased 8.7%, driven by a 10% increase in average ticket, partly offset by a 1% drop in traffic. Same-store sales for Family Dollar grew nearly 6%, helped by increases in average ticket and traffic.

Outlook

Dollar Tree expects consolidated net sales for the first quarter of 2023 to range between $7.2-7.4 billion. Same-store sales are expected to increase in the mid-single digits, with a low single digit comp increase at the Dollar Tree banner and a mid-single digit comp growth at the Family Dollar banner. EPS is expected to be $1.46-1.56 in Q1.

For FY2023, Dollar Tree’s consolidated net sales are expected to come between $29.9-30.5 billion. Comparable store sales are expected to increase in the low to mid-single digits, with a low single-digit increase in the Dollar Tree segment and a mid-single-digit increase in the Family Dollar segment. EPS is expected to range between $6.30-6.80 in FY2023.

Dollar General expects net sales growth of 5.5-6% and same-store sales growth of 3-3.5% in FY2023. EPS is estimated to grow around 4-6% for the full year.

Shares of Dollar Tree were up 2% on Monday while Dollar General’s stock was up less than 1%.

Click here to read the full transcript of Dollar Tree’s Q4 2022 earnings conference call

Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!

Most Popular

What to look for when Coca-Cola Company (KO) reports Q2 results

The Coca-Cola Company (NYSE: KO) is all set to unveil its second-quarter 2024 financial results next week. Over the years, it has constantly innovated its portfolio and expanded far beyond

What to expect when Southwest Airlines (LUV) reports Q2 2024 earnings results

Shares of Southwest Airlines (NYSE: LUV) were up over 2% on Tuesday. The stock has dropped 22% over the past 12 months. The airline is scheduled to report its second

PNC Earnings: Highlights of PNC Financial Services Group’s Q2 2024 report

The PNC Financial Services Group, Inc. (NYSE: PNC) Tuesday reported a modest increase in revenues and net income for the second quarter of 2024. Net income attributable to common shareholders

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top