Dollar Tree Updates Guidance; Q2 Sales, Profit Miss Estimates - Quick Facts

(RTTNews) - Dollar Tree, Inc. (DLTR), North America's leading operator of discount variety stores, announced its consolidated net sales for full-year 2016 are now expected to range between $20.69 billion and $20.87 billion compared to previously expected range of $20.79 billion to $21.08 billion. This estimate is based on a low single-digit increase in same-store sales, and 4.0% square footage growth. The company now anticipates net income per share for full-year 2016 will range between $3.67 and $3.82 compared to its previous EPS guidance range of $3.58 to $3.80. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.79 on revenue of $20.97 billion.

Dollar Tree estimates consolidated net sales for the third quarter to range from $5.02 billion to $5.10 billion, based on a low single-digit increase in same-store sales. Earnings per share are estimated to be in the range of $0.76 to $0.82. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.76 on revenue of $5.13 billion.

Second-quarter net income was $170.2 million or $0.72 per share compared to a loss of $98.0 million or $0.46 per share, last year. On average, 21 analysts polled by Thomson Reuters expected the company to report profit of $0.73 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter net sales increased 65.9% to $5.00 billion from $3.01 billion in the prior year's second quarter. Analysts expected revenue of $5.09 billion, for the quarter. The company noted that its second-quarter results include nine additional weeks of operations for the Family Dollar segment when compared to the second quarter of fiscal 2015, which included four weeks of operations following the acquisition on July 6, 2015.

The company said the $1.99 billion increase net sales was the result of an incremental $1.80 billion in net sales from Family Dollar stores, sales from new Dollar Tree stores, and a 1.2% same-store sales increase, on a constant currency basis. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 1.1%. The positive same-store sales growth was driven by increases in customer count and average ticket.