Dollar Tree, Inc. (DLTR) reported strong third-quarter earnings on Wednesday, surpassing consensus estimates by 5.6% to $1.12 per share. The company’s sales grew 3.5% year-over-year to $7.57 billion, beating the consensus of $7.44 billion.
Same-store net sales for Dollar Tree and Family Dollar segments both increased 1.8%, driven by higher traffic and average ticket prices. However, the company still plans to close approximately 970 underperforming Family Dollar stores, with 600 set to be closed in the first half of fiscal 2024 and 370 at the end of each store’s lease term.
The company has reiterating its commitment to completing a strategic review of its Family Dollar business segment. The review led to the identification of underperforming stores, which will be closed over the next two years.
Dollar Tree expects full-year sales of $30.7-30.9 billion and adjusted earnings per share (EPS) of $5.31-5.51, surpassing prior guidance and consensus estimates. The company also announced that Jeff Davis will step down as Chief Financial Officer, with an external search launched to replace him.
In the fourth quarter, Dollar Tree forecasts sales growth of 2-3% and adjusted EPS of $2.10-2.30. DLTR stock surged 4.93% on Wednesday morning, trading at $76.05.
Source: https://www.benzinga.com/24/12/42314941/dollar-tree-boosts-annual-profit-outlook-as-q3-earnings-surpass-expectations-stock-jumps