Dollar Tree Inc. (NASDAQ: DLTR) published its earnings report for the fiscal third quarter on Tuesday that blew past Wall Street estimates. In an announcement last month, Dollar Tree had expressed plans of hiring 25 thousand workers for its stores and distribution centres.
Dollar Tree shares jumped 3.5% in premarket trading on Tuesday. On a year to date basis, the stock is now more than 4% up after recovering close to 50% since its low in March.
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Dollar Tree’s Q3 financial results versus analysts’ estimates
Dollar Tree said that its net income in the third quarter came in at £247.63 million that translates to £1.04 per share. In the comparable quarter of last year, its net income was capped at a lower £191.95 million or 81 pence per share.
In terms of sales, the discount variety store recorded £4.64 billion in Q3 versus the year-ago figure of £4.31 billion. FactSet Consensus for Dollar Tree’s earnings and revenue in the recent quarter stood at 86 pence per share and £4.60 billion, respectively.
The Chesapeake-based company said that its same-store sales in the third quarter were 5.1% up on a year over year basis versus a lower 4.7% growth expected. Dollar Tree opened 143 new stores in the recent quarter. 34 of its stores were expanded or relocated in Q3 while 16 were closed. In separate news from the United States, J.M. Smucker also published its quarterly financial results on Tuesday.
Dollar Tree refrained from giving future guidance on Tuesday due to the ongoing COVID-19 crisis that has so far infected more than 12 million people in the United States and caused over a quarter million deaths.
CEO Mike Witynski’s comments on Tuesday
The American chain valued its share repurchase at £150.08 million in the fiscal third quarter. CEO Mike Witynski commented on the financial results on Tuesday and said:
“Dollar Tree delivered its strongest same-store sales performance in the past ten quarters, along with a 50-basis-point improvement in operating margin. At Family Dollar, the improvement continues as the team delivered a 6.4% comparable-store sales increase, a 230-basis-point improvement in gross profit margin and a 250-basis-point improvement in operating margin.”
Dollar Tree performed slightly upbeat in the stock market last year with an annual gain of roughly 4%. At the time of writing, it is valued at £17.41 billion and has a price to earnings ratio of 26.14.