Dollar Tree, Inc. (DLTR) reported a year-over-year increase of 11.8% in its second quarter earnings per share. However, the company reduced its fiscal 2021 earnings guidance due to additional freight costs since the previous guidance. <\/p>\n
Dollar General Corp. (DG) recorded a year-on-year decline of 13.8% in its second quarter earnings per share. Same-store sales were down 4.7%, for the quarter. The company updated its fiscal 2021 financial guidance despite an expected increase in transportation and distribution costs for the remainder of fiscal 2021.<\/p>\n
Dollar Tree reported that its second-quarter earnings per share increased 11.8% to $1.23, from $1.10, last year. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.01, for the quarter. Analysts’ estimates typically exclude special items. Net income increased to $282.4 million from $261.5 million, last year. <\/p>\n
Dollar Tree reported that consolidated net sales increased 1.0% to $6.34 billion from $6.28 billion. Analysts expected revenue of $6.44 billion, for the quarter. Enterprise same-store sales decreased 1.2% on a constant currency basis, or 1.1% when adjusted to include the impact of Canadian currency fluctuations. <\/p>\n
For fiscal 2021, Dollar Tree now expects consolidated net sales to range from $26.19 billion to $26.44 billion, based on a low single-digit increase in same-store sales and 3.4% square footage growth. The company now estimates earnings per share will range from $5.40 to $5.60. Previously, the company projected fiscal 2021 earnings per share in a range of $5.80 and $6.05. Analysts expect the company to report profit per share of $5.99 on revenue of $26.40 billion.<\/p>\n
Freight costs for fiscal 2021 are now expected to be $1.50 to $1.60 per share higher than fiscal 2020. The updated outlook includes $0.60 to $0.65 per share, of additional freight costs since the prior guidance. The company’s previous freight outlook assumed that its regular ocean carriers would fulfill only 85% of their contractual commitments and also assumed higher spot market rates. However, Dollar Tree now projects that its regular carriers will fulfill only 60-65% of their commitments. Also, the spot market rates for ocean freight from China have increased more than 20%.<\/p>\n
For the third quarter, Dollar Tree estimates consolidated net sales will range from $6.40 billion to $6.52 billion, based on a low single-digit increase in same-store sales for the combined enterprise. Earnings per share are estimated to be in the range of $0.88 to $0.98. Analysts expect the company to report profit per share of $1.26 on revenue of $6.43 billion.<\/p>\n
Shares of Dollar Tree were down 7% in pre-market trade on Thursday. <\/p>\n
Dollar General Corp. reported that its second-quarter earnings per share decreased 13.8% to $2.69 from $3.12, last year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $2.57, for the quarter. Net income was $637.0 million, a decrease of 19.1%. Net sales decreased 0.4% to $8.65 billion. Analysts expected revenue of $8.59 billion, for the quarter. <\/p>\n
For fiscal 2021, Dollar General now expects earnings per share in the range of $9.60 to $10.20, compared to previous expectation in the range of $9.50 to $10.20. Analysts expect the company to report profit per share of $10.22. Net sales growth is projected in a range of 0.5% to 1.5%; compared to prior expectation of a 1% decline to an increase of 1%. The company now targets same-store sales decline of 3.5% to 2.5%, compared to its prior expectation of a decline of 5% to 3%. Share repurchases are projected to be approximately $2.4 billion; compared to prior guidance of approximately $2.2 billion.<\/p>\n
Shares of Dollar General were down 5% in pre-market trade on Thursday. <\/p>\n