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  • Dollar Tree Inc DLTR reported third-quarter FY22 sales growth of 8.1% year-on-year to $6.94 billion, beating the consensus of $6.84 billion.
  • Same-store sales increased 8.6% for the Dollar Tree segment, 4.1% for Family Dollar, and 6.5% for Enterprise.
  • Gross profit for the quarter rose 17.5% Y/Y to $2.07 billion, and the gross margin expanded 240 basis points to 29.9%.
  • Operating margin expanded by 70 basis points to 5.5%, and operating income for the quarter rose 22.8% to $381.3 million.
  • The company held $506.9 million in cash and equivalents as of October 29, 2022.
  • EPS of $1.20 beat the consensus of $1.18.
  • DLTR had $1.85 billion remaining under its share repurchase authorization as of October 29, 2022.
  • “Our third quarter sales performance reflects the timely execution of merchandising initiatives to drive our consumables business in this uncertain and inflationary environment,” said CEO Mike Witynski.
  • Outlook: Dollar Tree sees FY22 EPS in the lower half of the previously expected $7.10 – $7.40 range, against the consensus of $7.32.
  • The company said it continues to experience inflationary cost pressures.
  • Meanwhile, the company raised FY22 sales guidance from $27.85 billion – $28.10 billion to $28.14 billion – $28.28 billion versus the consensus of $28.08 billion.
  • Dollar Tree sees Q4 sales of $7.54 billion – $7.68 billion versus the Street view of $7.52 billion.
  • RelatedDollar Tree Shares Are Sliding: What’s Going On?
  • Price Action: DLTR shares are trading lower by 9.7% at $149.21 on the last check Tuesday.

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