- Dollar Tree Inc DLTR reported second-quarter FY22 sales growth of 6.7% year-on-year to $6.77 billion, marginally missing the consensus of $6.79 billion.
- Same-store sales increased 7.5% for Dollar Tree, 2.0% for Family Dollar, and 4.9% for Enterprise.
- Gross profit for the quarter rose 14.2% Y/Y to $2.12 billion, and the gross margin expanded 200 basis points to 31.4%.
- Operating margin expanded by 120 basis points to 7.5%, and operating income for the quarter rose 25.7% to $505.4 million.
- The company held $742.4 million in cash and equivalents as of July 30, 2022.
- EPS of $1.60 beat the consensus of $1.58.
- DLTR had $2.25 billion remaining under its share repurchase authorization as of July.
- DLTR said it is making an investment in pricing at Family Dollar.
- "We expect the combination of this pricing investment at Family Dollar and the shoppers' heightened focus on needs-based consumable products will pressure gross margins in the back half of the year. We have therefore reduced our EPS outlook accordingly," said CEO Mike Witynski.
- Outlook: Dollar Tree lowered its FY22 EPS outlook to $7.10 - $7.40 from the prior view of $7.80 - $8.20, against the consensus of $8.19.
- The company expects FY22 sales of $27.85 billion - $28.10 billion (prior view $27.76 billion - $28.14 billion) versus the consensus of $28.16 billion.
- Dollar Tree sees Q3 sales of $6.75 billion - $6.87 billion versus the Street view of $6.87 billion. It expects Q3 EPS of $1.05 - $1.20 versus the consensus of $1.81.
- CFO Appointment: Dollar Tree has named Jeffrey A. Davis as its CFO. Kevin Wampler will transition out of his role as finance chief and is expected to remain an advisor until April 2023 to ensure a smooth transition.
- Price Action: DLTR shares are trading lower by 8.48% at $151.90 in premarket on the last check Thursday.
- Photo Via Company
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