Dollar Tree (DLTR) reported earnings Tue 24 Nov 2015 (b/o)

ticker:  DLTR

** charts before earnings **

 

** charts after earnings **

 

• 1 week later:

• 2 weeks later:

Dollar Tree misses by $0.14, beats on revs; guides Q4 revs below consensus; guides FY16 EPS below consensus :

• Reports Q3 (Oct) adj. earnings of $0.38 per share, $0.14 worse than the Capital IQ Consensus of $0.52; revenues rose 136.0% year/year to $4.95 bln vs the $4.84 bln Capital IQ Consensus.
  • The increase was the result of $2.67 billion in sales from the Family Dollar segment, and a same-store sales increase of 2.1% on a constant currency basis for the Dollar Tree segment.
  • Same-store sales increased 5.9% in the prior-year period for the Dollar Tree segment. Adjusted for the impact of Canadian FX, the same-store sales increase was 1.7%. The positive same-store sales were driven by increases in customer count and average ticket.
  • Gross margin decreased to 28.3% compared to 34.6% in the prior year. The primary contributors to the decrease were the impact of the overall lower-margin product mix for the Family Dollar business, an additional $13 mln of markdown expense for Family Dollar related to SKU rationalization and planned liquidations, and $38.4 million for Family Dollar related to the amortization of the stepped up inventory basis.
• Co issues downside guidance for Q4, sees Q4 revs of $5.32-5.42 bln vs. $5.44 bln Capital IQ Consensus Estimate, with low single digit comps.