In an August 24th release, Dollar Tree, Inc. (DLTR) announced second quarter FY 2023 results for the period ending July 29th 2023. The holding company operates Dollar Tree and Family Dollar banners. Dollar Tree Inc. posted net income of $200.4 million on total revenue of $7,325 million with a diluted EPS of $0.91, beating estimates of $0.88. Comparable values for the second quarter of FY 2022 were net income of $359.9 million on revenue of $6,769 million with a diluted EPS $1.60. Comparing the second quarters, revenue was up 8.2 percent in 2023. During the most recent quarter, Dollar Tree attained a gross margin of 29.2 percent (31.4 percent in Q2 FY 2022) and an operating margin of 3.9 percent, down from 7.5 percent in Q2 2022. For the second quarter, consolidated comparable store sales, increased by 6.9 percent, with Dollar Tree achieving 7.8 percent and Family Dollar, 5.8 percent increases.
In commenting on results, Rick Dreiling, Chairman and CEO stated, “At our June Investor Conference we shared the details of our strategy to transform the company and unlock the true value of our business, and our second quarter results show us making solid progress against these objectives. Both the Dollar Tree and Family Dollar segments reported strong same-store sales trends, driven by increased traffic and accelerated market share gains,” He concluded, “We are delivering on our strategy through the dedication of our 200,000 associates who are focused on providing an exceptional experience for our customers.”
Guidance for FY 2023 included consolidated sales of $30,900 million; mid-single-digit percent increase in comparable store sales and an EPS ranging from $5.78 to $6.08.
Effective July 29th 2023, Dollar Tree posted total assets of $23,428 million including $5,083 as goodwill and intangibles and carried long-term debt and lease obligations of $9,121 million. DLTR had a market capitalization of $2,713 million on August 28th. The share has traded over the past 52 weeks from $122.39 to $170.36 with a 50-day moving average of $145.67. DLTR closed at $141.85 on Wednesday 23rd August, pre-release, opening Thursday 24th down 13.0 percent post-release at $126.73. Dollar Tree trades with a forward P/E of 20.2. For the trailing-12 months the company posted an operating margin of 6.1 percent and a profit margin of 4.2 percent. The company returned 4.8 percent on assets and 14.0 percent on equity over the past twelve months.
Effective July 29th the company operated 16,476 stores (Dollar Tree, 8,177; Family Dollar 8,297). During the most recent quarter the company completed 276 renovations and added a a net quantity of 133 stores. Responding to complaints from civic organizations Dollar Tree added frozen and other foods to an additional 1,645 stores in areas deemed “food deserts”
In the investors’ call the company commented on theft and announced preventive measures that may offend customers.