A One Of A Kind Deal: Dollar Tree, Inc. (NASDAQ: DLTR)

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On 28 Jan 2020, Dollar Tree, Inc. (NASDAQ: DLTR) spotted trading -27.52% off 52-week high price. On the other end, the stock has been noted 0.66% away from the low price over the last 52-weeks. The stock changed -1.86% to recent value of $86.76. The stock transacted 3772104 shares during most recent day however it has an average volume of 3137.29K shares. The company has 235.8M of outstanding shares and 233.23M shares were floated in the market.

Dollar Tree, Inc. (DLTR) recently stated financial results for the quarter ended November 2, 2019.

Third Quarter Results

Consolidated net sales increased 3.7% to $5.75B from $5.54B in the previous year’s third quarter. Enterprise same-store sales increased 2.5%. Same-store sales for the Dollar Tree section increased 2.8%. Same-store sales for the Family Dollar section increased 2.3%. The comparable store sales results at both sections were driven by increases in both average ticket and transaction count.

Gross profit increased by $32.6M to $1.70B in the quarter contrast to the previous year’s third quarter. As a percentage of net sales, gross margin was 29.7% contrast to 30.2% in the previous year. The decrease in gross profit margin was driven by higher freight and distribution costs, higher sales of lower margin consumable merchandise primarily in the Family Dollar section, and shrink.

Selling, general and administrative expenses were 23.5% of net sales contrast to 23.2% of net sales in the previous year’s third quarter. The increase was driven primarily by operating and corporate expenses related to the consolidation of the Company’s store support centers, costs related to asset disposals for closed stores, and slightly higher depreciation expense, partially offset by lower payroll and benefits expenses.

Operating income for the quarter was $358.4M contrast with $387.8M in the same period last year and operating income margin was 6.2% of net sales in the third quarter contrast to 7.0% of net sales in last year’s quarter.

Net income was $255.8M in the third quarter and diluted earnings per share for the quarter were $1.08 contrast to $1.18 in the previous year’s quarter.

The Company repurchased 125,048 shares during the quarter for $11.6M. The Company has $800M remaining on its share repurchase authorization.

During the quarter, the Company opened 165 new stores, expanded or relocated 15 stores, and closed 42 stores. Additionally, the Company opened 39 Dollar Tree stores that were re-bannered from Family Dollar and completed 247 renovations to the Family Dollar H2 format. Retail selling square footage at quarter end was about 121.0M square feet.

First Nine Months Results

Consolidated net sales increased 4.1% to $17.30B from $16.62B in the same period last year. Enterprise same-store sales increased 2.4% on a constant currency basis (or 2.3% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for the Dollar Tree section increased 2.6% (or 2.5% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for Family Dollar increased 2.1%.

Gross profit for the first nine months increased $44.8M to $5.08B. As a percentage of net sales, gross margin was 29.4%, contrast to 30.3% in the previous year period.

Selling, general and administrative expenses were 23.5% of net sales contrast to 23.0% of net sales for the first nine months of 2018.

Operating income for the period was $1.01B. As a percentage of net sales, operating income margin reduced to 5.9% in the current year period from 7.3% in the previous year.

Net income contrast to the previous year’s period reduced 1.7% to $704.0M and diluted earnings per share reduced 1.7% to $2.95 contrast to $3.00 in the previous year’s period.

 Its earnings per share (EPS) expected to touch remained -237.90% for this year while earning per share for the next 5-years is expected to reach at 3.93%. DLTR has a gross margin of 29.80% and an operating margin of -4.80% while its profit margin remained -6.80% for the last 12 months.   According to the most recent quarter its current ratio was 1.1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -4.79% from the mean of 20 days, -8.40% from mean of 50 days SMA and performed -16.38% from mean of 200 days price. Company’s performance for the week was -3.06%, -5.78% for month and YTD performance remained -7.75%.

 


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