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published in Blogs
Mar 04, 2022
Dollar Tree (DLTR, $146.48) beats Q4 earnings expectations

Dollar Tree (DLTR, $146.48) beats Q4 earnings expectations

Dollar Tree posted its fourth quarter earnings that exceeded the Zacks Consensus Estimate.

The discount retail chain’s earnings fell -5.6% year over year to $2.01 per share in the quarter, well above the Zacks Consensus Estimate of $1.79.

Consolidated net sales rose +4.6% from the year-ago quarter to $7,044.7 million but fell short of the Zacks Consensus Estimate of $7,127 million.

Enterprise same-store sales (comps) rose +2.5% year over year. Comps at the Dollar Tree banner were up +3.1%, while comps for the Family Dollar banner increased +1.7% year over year.

The company’s gross margin narrowed -160 bps to 30.2%, amid higher freight costs and recall-related markdowns, partly offset by continued improvement in shrink, positive product mix and lower distribution costs. The gross margin fell -50 bps to 35.6% at the Dollar Tree banner and -320 bps to 23.4% at the Family Dollar banner.

For fiscal 2022, the company expects to complete 800 Family Dollar H2 Renovations as part of the Key Real Estate Initiative, out of which there will be 190 Dollar Tree stores and 400 Family Dollar stores. Within the Family Dollar segment, 350 stores will be in the Combo Store format. The company plans to  expand the $3 and $5 Plus assortments to more than 1,500 Dollar Tree stores.

Related Tickers: DLTR