Key points:
- Dollar Tree reported first quarter earnings
- The company beat earnings and revenue expectations
- Raised full year guidance
- Dollar Tree Stock Slides 3% After Revenue Miss
Dollar Tree (NASDAQ: DLTR) stock has surged almost 17% premarket action to around $156.38 after the company released first-quarter earnings, beating profit and revenue expectations.
The discount store chain announced earnings per share of $2.37 before the bell on Thursday, with revenue coming in at $6.9 billion.
The numbers reported were against an anticipated EPS of $2 and revenue of $6.76 billion.
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The company reported that same-store sales for Enterprise increased 4.4%, Dollar Tree rose 11.2%, and Family Dollar declined by -2.8%.
“The team delivered a solid start to the year – with a 6.5% top-line sales expansion, a 19.2% lift to gross profit, and a 48.1% increase to earnings per share. During the quarter, the Dollar Tree team successfully completed its conversion to the $1.25 price point, contributing to both sales and margin improvements. Shoppers are responding favorably as the new, greater value products hit our shelves,” stated Michael Witynski, President and Chief Executive Officer.
Dollar Tree raised its FY22 EPS expectations to $7.80 and $8.20 from $7.60 to $8. It also increased FY22 revenue guidance to between $27.76 billion to $28.14 billion from 27.22 billion to $27.85 billion.
“Value and convenience are more important than ever to our shoppers and the communities we serve. We have a robust balance sheet and expect to continue generating a significant amount of cash flow in our business. Our management team and Board are strategically aligned and believe our company is very well-positioned to deliver long-term, profitable growth,” added Witynski.
