Dollar Tree misses sales, ends price rise at $1.25 in the US

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Dollar Tree Inc. sltr
The stock fell 1.2% on premarket Wednesday after the discount retailer reported a loss in sales. Net income totaled $454.2 million, or $2.01 per share, down from $502.8 million, or $2.13 per share, last year. The company suffered three unusual charges in the quarter, including $34.1 million for a recall at an Arkansas distribution center and the 404 Family Dollar stores it serves due to a rodent infestation. Sales totaled $7.077 billion, up from $6.767 billion last year. The FactSet consensus was for EPS of $1.78 and sales of $7.120 billion. Same-store sales increased 2.5%, with Dollar Tree up 3.1% and Family Dollar up 1.7%. The FactSet consensus was for same-store sales growth of 2.9%. “It is important to note that we recently completed a successful conversion to $1.25 in all Dollar Tree stores in the United States, more than two months ahead of schedule, which significantly improves our ability to provide meaningful assortment at extreme value to our buyers,” said Michael Witynski, the company’s chief executive, in a statement. “We continue to have strong performance on other key strategic initiatives, including the expansion of our $3 and $5 Plus assortment at Dollar Tree stores, as well as our Combo Stores and H2 Renovations at Family Dollar. .” For the first quarter, Dollar Tree forecasts sales in the range of $6.63 billion to $6.78 billion, same-store sales growth in the single digits and EPS between 1.95 and 2.10 dollars. The FactSet consensus forecasts sales of $6.797 billion, comparable store sales growth of 2.7% and EPS of $1.67. For the full year, Dollar Tree forecasts sales of between $27.22 billion and $27.85 billion, low to mid-single digit comparable store sales growth and EPS of between $7.60 and $8.00. The FactSet consensus forecasts sales of $28.042 billion, comparable store sales growth of 1% and EPS of $7.65. Dollar Tree stock has gained 41.2% over the past year while the S&P 500 SPX Index,
+1.00%
is up 11.3%.

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