Dollar Tree Q4 Highlights: 9% Sales Growth, Earnings Beat, Mixed Outlook & More

Dollar Tree Inc DLTR reported fourth-quarter FY22 sales growth of 9% year-on-year to $7.72 billion, beating the consensus of $7.60 billion.
Same-store sales increased 8.7% for the Dollar Tree segment, 5.8% for Family Dollar, and 7.4% for Enterprise.
Gross profit for the quarter rose 11.6% Y/Y to $2.39 billion, and the gross margin expanded 70 basis points to 30.9%.
Operating margin contracted by 20 basis points to 8%, and operating income for the quarter rose 6.8% to $618.1 million.
The company held $642.8 million in cash and equivalents as of Jan. 28, 2023.
EPS of $2.04 beat the consensus of $2.02.
The company opened 123 new stores in Q4, relocated 38 stores, and closed 77 stores.
While share repurchases are not included in the outlook, the company had $1.85 billion remaining under its share repurchase authorization as of Jan. 28, 2023.
Outlook: Dollar Tree sees Q1 net sales of $7.2 billion - $7.4 billion versus the Street view of $7.2 billion.
The company sees Q1 EPS of $1.46 - $1.56, below the consensus of $1.85.
For FY23, DLTR expects FY23 consolidated net sales of $29.9 billion - $30.5 billion, above the consensus of $29.86 billion.
The company forecasts EPS of $6.30 - $6.80, including the contribution from the 53rd week, below the Street view of $7.78.
Also Read: Dollar Tree Becomes $5 Tree: Inflation Forces Retailer To Expand Higher-Priced Products To 1,800 Stores
Price Action: DLTR shares are trading higher by 2.18% at $148.44 on the last check Wednesday.

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