Dollar Tree meets estimates with Q4 results, FY guidance

(Sharecast News) - Dollar Tree met consensus forecasts with its fourth-quarter results and forward guidance on Friday, with the American discount retail chain swinging to a profit to close out the financial year.

The company, which runs 9,200 stores across the US and Canada, reported a net income of $506.1m for the three months to 31 January, compared with a loss of $3.70bn the year before.

On an adjusted per-share basis, earnings came in at $2.56, up 21.3% year-on-year and slightly ahead of the $2.53 market estimate.

Net sales for the fourth quarter were up 9.0% at $5.5bn, broadly meeting forecasts, with same-store net sales up 5.0% as a 6.3% increase in average tickets was slightly offset by a 1.2% drop in traffic.

For the total year, net sales were up 10.4% at $19.4bn, while net profits were $1.28bn, up from a $3.03bn loss previously.

"Our strong results this quarter show that Dollar Tree remains America's retail destination for value, convenience, and discovery - underscored by our 20th consecutive year of positive same store sales," said chief executive Mike Creedon.

"By delivering great value at low prices, with disciplined execution, we continue to expand our reach and drive long-term growth."

Looking ahead, the firm guided to net sales from continuing operations of between $20.5bn and $20.7bn, though same-store net sales growth is tipped to slow to 3-4%. Adjusted EPS has been pencilled in as between $6.50 and $6.90.

Current consensus is pointing to same-store sales growth of 3.6% and adjusted EPS of $6.70.

DLTR futures were up 1.4% at $109.00 in pre-market trade on Wall Street.