Dollar Tree +1.5% after earnings
Mar. 06, 2019 7:46 AM ETDollar Tree, Inc. (DLTR)By: Clark Schultz, SA News Editor7 Comments
- Dollar Tree (NASDAQ:DLTR) reports same-store sales for the Dollar Tree banner increased 3.2% on a constant currency basis in Q4 and same-store sales for the Family Dollar banner increased 1.4%.
- Gross profit fell to 30.8% of sales vs. 33.0% a year ago. Higher markdowns, domestic freight costs, shrink, distribution costs and occupancy costs dragged on margins during the quarter.
- The company says a goodwill impairment test performed in Q4 showed that the fair value of the Family Dollar business was lower than the carrying value resulting in a $2.73B non-cash pre-tax and after-tax goodwill impairment charge.
- Looking ahead, Dollar Tree guides for Q1 revenue of $5.74B to $5.85B vs. $5.81B consensus and EPS of $1.05 to $1.15 vs. $1.30 consensus. FY20 revenue of $23.45B to $23.87B is anticipated vs. $23.89B consensus and EPS of $4.85 to $5.25 vs. $5.82 consensus.
- Shares of Dollar Tree are up 1.45% premarket to $96.85.
- Previously: Dollar Tree beats by $0.01, beats on revenue (March 6)