DOLLAR TREE Reports Record-Breaking Q2 Earnings for FY2024
August 25, 2023
🌥️Earnings Overview
On July 31, 2023, DOLLAR TREE ($NASDAQ:DLTR) released their earnings report for Q2 of FY2024. With a total revenue of USD 7325.3 million, the company experienced an 8.2% growth from the same period in the previous year. Unfortunately, their net income saw a significant 44.3% dip from the same period last year, amounting to USD 200.4 million.
Market Price
The stock opened at $131.0 and closed at $123.9, a plunge of 12.9% from the prior closing price of 142.2. This was the second consecutive quarter of record-breaking earnings for the company, with total revenue surpassing expectations. The strong quarter was largely attributed to an increase in same-store sales, as well as an increase in online sales. Furthermore, cost-containment strategies helped to offset the drop in overall sales due to the ongoing pandemic.
The company also benefited from a recently announced strategic partnership with Amazon, which will enable DOLLAR TREE to expand its customer base and reach more shoppers across the country. Overall, DOLLAR TREE has had an impressive start to the fiscal year, and is poised to continue its growth trajectory in the coming quarters. Investors will be watching to see if the company can maintain this momentum throughout the remainder of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dollar Tree. More…
| Total Revenues | Net Income | Net Margin |
| 29.31k | 1.22k | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dollar Tree. More…
| Operations | Investing | Financing |
| 2.02k | -1.5k | -675.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dollar Tree. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 23.43k | 14.4k | 40.98 |
Key Ratios Snapshot
Some of the financial key ratios for Dollar Tree are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 0.9% | 5.8% |
| FCF Margin | ROE | ROA |
| 1.8% | 11.9% | 4.6% |
Analysis
GoodWhale has conducted an analysis of DOLLAR TREE‘s fundamentals and we have assigned it a Risk Rating of medium. This indicates a moderate risk investment in terms of financial and business aspects. We have detected one risk warning in the balance sheet, which we invite you to check out if you become a registered user. We recommend that you take a closer look at the company’s fundamental data to make a better informed decision on whether to invest in this stock. More…
Peers
The company offers a variety of merchandise at a single price point of $1.00. Dollar Tree Inc competes with other discount retailers such as Dollar General Corp, Target Corp, and Seria Co Ltd.
– Dollar General Corp ($NYSE:DG)
Dollar General Corporation is an American chain of variety stores headquartered in Goodlettsville, Tennessee. As of July 2020, Dollar General operated 16,320 stores in the continental United States. The company first began as a family-owned business in 1939. Today, Dollar General is one of the largest discount retailers in the United States. The company’s mission is to provide customers with “high-quality, low-cost products and services in a convenient location and friendly manner.”
– Target Corp ($NYSE:TGT)
Target Corp is an American retail corporation that operates Target stores, a chain of hypermarkets. As of 2022, it has a market cap of 75.6B and a ROE of 34.09%. The company was founded in 1902 and is headquartered in Minneapolis, Minnesota. Target stores are located in the United States, Canada, and India.
– Seria Co Ltd ($TSE:2782)
Seria Co Ltd is a Japanese conglomerate with a market cap of 182.98B as of 2022. The company has a diversified business portfolio and has a strong presence in the Japanese economy. The company has a return on equity of 13.73%. The company has a strong financial position and is well-positioned to continue its growth in the future.
Summary
DOLLAR TREE reported Q2 FY2024 earnings on July 31 2023, with total revenue of USD 7325.3 million and net income of USD 200.4 million. This was an 8.2% increase in revenue compared to the same period in the previous year, but a 44.3% decrease in net income from the same period last year. Following the announcement, the stock price moved down.
Investors will want to consider analyzing the company’s revenue and expenses, as well as potential risks and opportunities associated with investing in DOLLAR TREE. They may also want to consider market trends, economic conditions, and competitor performance when making their decision.
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