Why Dollar Tree Shares Are Rallying Today

Dollar Tree Inc DLTR reported first-quarter FY22 sales growth of 6.5% year-on-year to $6.90 billion, beating the consensus of $6.76 billion.
Enterprise same-store sales increased 4.4%. Same-store sales for Dollar Tree increased 11.2%. Family Dollar same-store sales decreased 2.8%.
Gross profit for the quarter rose 19.2% Y/Y to $2.34 billion, and the gross margin expanded 360 basis points to 33.9%.
The operating margin expanded by 260 basis points to 10.6%, and operating income for the quarter rose 40.7% to $731.5 million.
The company held $1.2 billion in cash and equivalents as of April 30, 2022.
EPS of $2.37 beat the consensus of $2.00.
Outlook: Dollar Tree raised its FY22 EPS outlook to $7.80 - $8.20 from $7.60 - $8.00, against the consensus of $7.97.
The company raised FY22 sales guidance to $27.76 billion - $28.14 billion from $27.22 billion - $27.85 billion versus the consensus of $27.95 billion.
Dollar Tree sees Q2 sales of $6.65 billion - $6.78 billion versus the Street view of $6.75 billion. It expects Q2 EPS of $1.45 - $1.55 versus the consensus of $1.71.
Price Action: DLTR shares are trading higher by 15% at $153.60 in premarket on the last check Thursday.
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Momentum46.05

Growth4.78

Quality26.93

Value63.71

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