Discount store operator Dollar Tree (DLTR) reported an increase in second-quarter profit, aided by higher sales. However, the company’s stock dropped sharply after the earnings numbers and comparable sales missed Wall Street estimates.
During the second quarter, adjusted earnings advanced to $1.15 per share from $0.99 per share in the corresponding period last year, but fell short of analysts’ expectation. Reported profit was $273.9 million or $1.15 per share, higher than $233.8 million or $0.98 per share registered last year.
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.
RELATED: Dollar General beats estimates in Q2
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.
RELATED: Dollar Tree Q1 earnings miss estimates
Most Popular
Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO
Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on