On Wednesday, Dollar Tree, Inc.
The discount variety store chain reported sales of $7.57 billion, up 3.5% year-over-year, beating the consensus of $7.44 billion.
Enterprise same-store net sales increased 1.8%, driven by a 1.6% increase in traffic and a 0.2% increase in average ticket.
Dollar Tree's same-store net sales increased 1.8%, driven by a 1.5% increase in traffic and a 0.3% increase in average ticket. Family Dollar's same-store net sales increased 1.9%, driven by a 1.8% increase in traffic and a flat average ticket.
The company continues reiterating its commitment to completing its formal review of strategic alternatives for the Family Dollar business segment.
As a result of the portfolio optimization review, the company identified approximately 970 underperforming Family Dollar stores, including approximately 600 stores to be closed in the first half of fiscal 2024 and around 370 stores to be closed at the end of each store's current lease term.
As of November 2, the company closed approximately 670 stores and expects to close an additional 25 during the remainder of fiscal 2024.
"Our Dollar Tree and Family Dollar merchandising efforts produced tangible results, and our third quarter sales came in at the high end of our expected range," said Mike Creedon, Interim Chief Executive Officer.
Dollar Tree also announced that Jeff Davis will step down from his role as the Chief Financial Officer. The company has launched an external search.
Guidance: Dollar Tree expects fiscal year 2024 sales of $30.7 billion-$30.9 billion, compared to prior guidance of $30.6 billion-$30.9 billion and the consensus of $30.73 billion.
The company still expects to deliver comparable store net sales growth in the low-single-digits for the enterprise and both the Dollar Tree and Family Dollar segments.
Dollar Tree expects 2024 adjusted EPS of $5.31-$5.51 compared to prior guidance of $5.20-$5.60, versus the consensus of $5.38.
For the fourth quarter of 2024, Dollar Tree forecasts sales of $8.1 billion-$8.3 billion, compared to the consensus of $8.26 billion, based on comparable store net sales growth in the low single digits for the enterprise and both the Dollar Tree and Family Dollar segments.
Adjusted diluted EPS for the fourth quarter is estimated to be $2.10-$2.30 compared to the consensus of $2.22.
Price Action: At last check on Wednesday, DLTR stock was up 4.93% at $76.05 during the premarket session.
