Dollar Tree (NASDAQ:DLTR) reported second-quarter earnings of 76 cents per share, which missed the analyst consensus estimate of 81 cents by 6.2%. This is a 33.9% decrease over earnings of $1.15 per share from the same period last year.
The discount-store chain, based in Chesapeake, Va., reported quarterly sales of $5.74 billion, which beat the analyst consensus estimate of $5.71 billion by 0.5%. This is a 3.9% increase over sales of $5.526 billion the same period last year.
Gross profit was $1.65 billion in the quarter compared to $1.66 billion in the prior year’s second quarter. As a percentage of sales, gross margin was 28.7% of sales compared to 30.1% of sales in the prior year. The decrease in gross profit margin was driven by higher freight costs for both segments, and markdowns and shrink in the Family Dollar segment.
"The turnaround of the Family Dollar business continues to gain momentum. Family Dollar's same-store sales increase of 2.4% was the third consecutive quarter of sequential acceleration and represented a 160-basis-point improvement in the two-year stacked comp," said CEO Gary Philbin.
"And, despite sales headwinds created by the global helium shortage, the Dollar Tree segment delivered a same-store sales increase of 2.4%, while cycling a strong 3.7% increase from the prior year's quarter. Dollar Tree has now delivered 46 consecutive quarters of positive same-store sales, and eight consecutive quarters with two-year stacked comps exceeding 6%."
Dollar Tree shares moved downward mid-morning Thursday by 43 cents to $99.17.
