On Monday, Shares of Dollar Tree Inc (NASDAQ: DLTR) showed the bullish trend with a higher momentum of 0.76% and ended its trading session at $84.63. The company traded total volume of 1.46M shares as contrast to its average volume of 2.94M shares. The company has a market value of $19.87B and about 234.74M shares outstanding. During the 52-week trading session, the minimum price at which share price traded was registered at $66.01 and reached the max level of $116.65.
Dollar Tree, Inc. (DLTR), North America’s leading operator of discount variety stores, recently stated financial results for its first quarter ended May 5, 2018.
First Quarter Results:
Consolidated net sales increased 5.0% to $5.55B from $5.29B in the prior year’s first quarter. Enterprise same-store sales increased 1.4%. Same-store sales for the Dollar Tree banner increased 4.0% on a constant currency basis (or 4.1% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for the Family Dollar banner reduced 1.1%.
Gross profit increased 4.5% to $1.70B in the quarter contrast to $1.63B in the prior year’s first quarter. As a percent of sales, gross margin reduced to 30.6% contrast to 30.8% in the prior year. The 20 basis point declines was driven mainly by higher shrink, distribution and occupancy costs, partially offset by lower markdowns and lower merchandise costs.
Selling, general and administrative expenses were 22.7% of sales contrast to 23.4% of sales in the prior year’s first quarter. The prior year included a $50.90M receivable impairment. Excluding the receivable impairment, selling, general and administrative expenses, as a percentage of sales, were 22.5% in the prior year’s quarter. The 20 basis point increases in selling, general and administrative expenses, excluding the receivable impairment, was driven by higher store payroll expenses related to the Company’s reinvestment of a portion of its tax savings, partially offset by lower depreciation and amortization costs as a percentage of sales.
Operating income for the quarter increased to $437.60M contrast with $388.80M in the same period last year and operating income margin increased to 7.9% in the current quarter from 7.4% of sales in last year’s quarter. The increase is mainly the result of the $50.90M receivable impairment recorded in the prior year first quarter. Excluding the receivable impairment, operating income margin from the prior year’s quarter was 8.3%.
Net interest expense was $230.00M in the quarter contrast to $74.70M in the prior year quarter. The increase is because of the prepayment premiums paid in the quarter of $107.80M and $6.50M related to the redemption of the 5.75% Acquisition Notes due 2023 and Term Loan B-2, respectively. Also, in connection with the Company’s debt refinancing in the quarter, $41.20M of amortizable non-cash deferred financing costs were accelerated and expensed.
Net income contrast to the prior year’s first quarter reduced $40.00M to $160.50M and GAAP diluted earnings per share was $0.67 contrast to $0.85 in the prior year’s quarter. Excluding debt refinancing costs in the current year quarter and the receivable impairment from the prior year’s quarter, diluted earnings per share improved 21.4% to an adjusted $1.19 contrast to an adjusted $0.98 from the prior year quarter.
During the quarter, the Company opened 130 stores, expanded or relocated 26 stores, and closed 5 stores. Retail selling square footage at quarter-end was about 117.60M square feet.
The Company estimates consolidated net sales for the second quarter of 2018 to range from $5.47B to $5.57B, based on a low single-digit increase in same-store sales for the combined enterprise. Diluted earnings per share are estimated to be in the range of $1.07 to $1.16.
Consolidated net sales for full-year fiscal 2018 are now expected to range from $22.73B to $23.05B contrast to the Company’s formerly expected range of $22.70B to $23.12B. This estimate is based on a low single-digit increase in same-store sales and 3.7% square footage growth. The Company now anticipates net income per diluted share for full-year fiscal 2018 will range between $4.80 and $5.10 contrast to the Company’s formerly expected range of $5.25 to $5.60.
The Company offered net profit margin of 7.40% while its gross profit margin was 31.50%. ROE was recorded as 25.30% while beta factor was 0.81. The stock, as of recent close, has shown the weekly downbeat performance of -0.45% which was maintained at -21.14% in this year.