Net sales moved up 4.6% to $5.53 Billion, in line with estimates. Enterprise same-store sales rose 1.8% but missed estimates. Sales of the Dollar Tree segment gained 3.7%, while Family Dollar remained flat, weakening the overall comparable sales performance. During the quarter, the company opened 146 stores, expanded or relocated 13, and closed 26.
Comparable store sales of the Family Dollar segment remained flat during the quarter, dragging the overall performance
“Our customers are responding to the assortment and layout and we expect to exceed our store renovations target for this fiscal year. Together, the banners are focused to deliver increased value to long-term shareholders by continuing to grow and improve our business,” said Dollar Tree CEO Gary Philbin.
For the third quarter, the management expects net sales between $5.53 billion and $5.64 billion and sees enterprise same-store sales growth in a low single-digit. Earnings are estimated to be in the range of $1.11 per share to $1.18 per share.
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Sales are forecast to be between $22.75 billion and $22.97 billion in the full fiscal year, slightly below the company’s earlier estimate. The earnings per share guidance has been revised down to the range of $4.85 to $5.05 from the previous outlook of $4.80- $5.10 per share for 2018 when same-store sales are expected to grow in low single-digit.
Dollar Tree shares lost about 13% since the beginning of the year. The stock closed the last trading session higher but lost more than 5% in premarket trading Thursday after the earnings report.
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