
Dollar Tree posts a disappointing Q4 earnings report
- Dollar Tree reported its financial results for the fourth quarter today.
- Here's what its CEO Rick Dreiling said in a press release on Wednesday.
- $DLTR is down roughly 8.0% following the earnings print this morning.
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Dollar Tree Inc (NASDAQ: DLTR) is down 8.0% in premarket on Wednesday after reporting disappointing financial results for the fourth quarter.
Dollar Tree stock down on muted guidance
Copy link to sectionThe stock is being punished also because the discount retail stores chain issued muted guidance for the future. $DLTR forecasts $6.70 to $7.30 of per-share earnings this year on up to $32 billion in net sales.
Analysts, in comparison, were at $7.04 and $31.65 billion, respectively. Rick Dreiling – the chief executive of Dollar Tree said in a press release today:
As we look forward in 2024, we’re accelerating our multi-price rollout at Dollar Tree and taking decisive action to improve profitability and unlock value at Family Dollar.
Dollar Tree now forecasts a low-to-mid-single digit increase in comparable net sales in 2024. $DLTR is still up more than 30% versus its low in early October of 2023.
Dollar Tree Q4 earnings snapshot
Copy link to section- Lost $1.71 billion that translates to $7.85 per share
- Had $452.2 million loss ($2.04 a share) last year
- Adjusted EPS printed at $2.55 cents as per the earnings report
- Revenue climbed 12% year-over-year to $8.64 billion
- Consensus was $2.65 a share on $8.65 billion in revenue
Note that Dollar Tree took a goodwill impairment charge of over $1.0 billion in Q4 related to its plans of closing about 1,000 stores. According to its CFO Jeff Davis:
While we expect current shrink and mix levels to be a headwind in the first half of the year, we are expecting to benefit from favorable freight rates and moderating headwinds from reduced SNAP benefits throughout the year.
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