In a November 29th release, Dollar Tree, Inc. (DLTR) announced Q3 FY 2023 results for the period ending October 28th 2023. The holding company operates Dollar Tree and Family Dollar banners. Dollar Tree Inc. posted net income of $212 million on total revenue of $7,315 million with a diluted EPS of $0.97. Comparable values for Q3 FY 2022 were net income of $267 million on revenue of $6,940 million with a diluted EPS of $1.20. Comparing the respective third quarters, revenue was up 5.4 percent in 2023. During the most recent quarter, Dollar Tree attained a gross margin of 29.6 percent (29.9 percent in Q3 FY 2022) and an operating margin of 4.1 percent, down from 5.5 percent in Q3 2022. For the third quarter, consolidated comparable store sales, increased by 3.9 percent, with Dollar Tree achieving 5.4 percent and Family Dollar, 1.4 percent increases.
In commenting on results, Rick Dreiling, Chairman and CEO stated, Our third-quarter results were within our expectations thanks to continued execution across all aspects of our business transformation,” He added, “In a challenging environment, our performance was among the best.
Guidance for FY 2023 included consolidated sales of $30,500 million to $30,700 million; mid-single-digit percent increase in comparable store sales and an EPS ranging from $5.81 to $6.01.
Effective October 28th 2023, Dollar Tree posted total assets of $24,031 million including $5,083 as goodwill and intangibles and carried long-term debt and lease obligations of $9,199 million. DLTR had a market capitalization of $2,851 million on December 18th. The share has traded over the past 52 weeks from $102.77 to $161,10 with a 50-day moving average of $116.09. DLTR closed at $116.04 on Tuesday 28th November, pre-release, closing Wednesday 29th at $121.12, up 5.3 percent. Dollar Tree trades with a forward P/E of 19.1. For the trailing-12 months the company posted an operating margin of 4.1 percent and a profit margin of 3.9 percent. The company returned 4.5 percent on assets and 13.5 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 Q3 the company continued renovations and added a a net 197 stores. Responding to complaints from civic organizations Dollar Tree added frozen and fresh foods to an additional 1,645 stores during the previous quarter in areas deemed “food deserts”
In the investors’ call the company commented on theft as a headwind and announced preventive measures that may offend customers.