On 10 Sep 2019, Dollar Tree, Inc. (NASDAQ:DLTR) closed the trading at a price of $109.93 with the positive/negative change of +0.95%. In the past session approximately 1,826,153 shares were exchanged against the average daily trading volume of 2,175,535 shares. The stock market capitalization has now valued at $24.092B.
Dollar Tree, Inc. (DLTR) recently stated financial results for the quarter ended August 3, 2019.
Second Quarter Results
Consolidated net sales increased 3.9% to $5.74B from $5.53B in the previous year’s second quarter. Enterprise same-store sales increased 2.4%. Same-store sales for the Dollar Tree section increased 2.4% on a constant currency basis (or 2.3% when adjusted to include the impact of Canadian currency fluctuations). The Company estimates the helium shortage negatively influenced Dollar Tree same-store sales by about 40 basis points. Same-store sales for the Family Dollar section increased 2.4%.
Gross profit was $1.65B in the quarter contrast to $1.66B in the previous year’s second quarter. As a percentage of sales, gross margin was 28.7% of sales contrast to 30.1% of sales in the previous year. The decrease in gross profit margin was driven by higher freight costs for both sections, and markdowns and shrink in the Family Dollar section.
Selling, general and administrative expenses were 24.0% of sales contrast to 23.2% of sales in the previous year’s second quarter. The increase was driven by operating and corporate expenses related to the consolidation of the Company’s store support centers, asset write-offs for closed stores, and payroll costs resulting from higher average hourly rates and store-level initiatives.
Operating income for the quarter was $268.9M contrast with $382.5M in the same period last year and operating income margin was 4.7% of sales in the second quarter contrast to 6.9% of sales in last year’s quarter.
Net income was $180.3M in the second quarter and GAAP diluted earnings per share for the quarter was $0.76 contrast to $1.15 in the previous year’s quarter.
The Company repurchased 881,624 shares during the quarter for $88.4M. The Company has about $812M remaining on its share repurchases authorization.
During the quarter, the Company opened 150 new stores, expanded or relocated 19 stores, and closed 296 Family Dollar stores and nine Dollar Tree stores. The Family Dollar store closings related to the Company’s before reported store optimization efforts. Additionally, the Company opened 106 Dollar Tree stores that were re-bannered from Family Dollar. Retail selling square footage at quarter end was about 119.7M square feet.
First Six Months Results
Consolidated net sales increased 4.2% to $11.55B from $11.08B in the same period last year. Enterprise same-store sales increased 2.3% on a constant currency basis (or 2.2% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for the Dollar Tree section increased 2.4%. Same-store sales for Family Dollar increased 2.1%.
Gross profit for the first six months increased $12.2M to $3.38B. As a percentage of sales, gross margins were 29.2%, contrast to 30.4% in the previous year period.
Selling, general and administrative expenses were 23.6% of sales contrast to 23.0% of sales for the first six months of 2018.
Operating income for the period was $654.4M. Operating income margin reduced to 5.7% of sales in the current year period from 7.4% of sales in the previous year.
Net income contrast to the previous year’s period increased 3.2% to $448.2M and GAAP diluted earnings per share increased 3.3% to $1.88 contrast to $1.82 in the previous year’s period.
DLTR its monthly performance is 22.02% and a quarterly performance of 3.19%. The stock price is moving up from its 20 days moving average with 11.69% and isolated positively from 50 days moving average with 7.34%.