Dollar Tree Inc. (NASDAQ: DLTR) said on Wednesday that its sales in the fiscal fourth quarter came in worse than expected due to the ongoing Coronavirus pandemic that has infected more than 29 million people in the United States and caused over half a million deaths.
Dollar Tree shares were reported about 2% down in premarket trading on Wednesday. The stock now has a per-share price of £69 versus £47 in March 2020.
Dollar Tree’s Q4 financial results versus analysts’ estimates
Dollar Tree said that its net income printed at £359.99 million, that translates to £1.53 per share. In the same quarter last year, its net income stood at a much lower £88.06 million, or 37.23 pence per share.
The chain of discount variety stores valued its sales in Q4 at £4.85 billion versus the year-ago figure of £4.52 billion. In the prior quarter (Q3), Dollar Tree had recorded £247.63 million of net income.
According to FactSet, experts had forecast the company to report £4.87 billion of sales in the recent quarter. Their estimate for per-share earnings stood at a marginally lower £1.52 per share. Dollar Tree’s financial report comes a day after the American luxury department store chain, Nordstrom Inc., published market-beating quarterly results.
According to Dollar Tree, its comparable-store sales jumped 5% in the fiscal fourth quarter versus a slightly broader 5.5% growth expected. Family Dollar same-store sales, the Chesapeake-based company added, saw an annualised growth of 8.1%. Its namesake chain, on the other hand, posted a 2.4% year over year increase in the fourth-quarter comparable-store sales.
Dollar Tree increased its stock buyback programme by £1.43 billion
Dollar Tree increased its stock buyback programme on Wednesday by £1.43 billion. The U.S. firm expressed plans of opening 400 new Dollar Tree stores in fiscal 2021. It also wishes to open 200 new Family Dollar stores, and renovate another 1,250 of its existing Family Dollar locations this year.
CEO Michael Witynski commented on the earnings report on Wednesday and said:
“I am very pleased with the team’s operating performance for the fourth quarter, highlighted by a solid same-store sales increase, improved gross margin and expense leverage.”
Dollar Tree performed fairly upbeat in the stock market last year, with an annual gain of more than 15%. At the time of writing, the American chain of discount variety stores has a market cap of £16.66 billion and a price to earnings ratio of 24.47.
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