DOLLAR TREE Reports Second Quarter Earnings Results for FY2024
August 31, 2023
🌥️Earnings Overview
Dollar Tree ($NASDAQ:DLTR) reported their second-quarter FY2024 earnings results on July 31 2023, with total revenue for the period reaching USD 7325.3 million, representing an 8.2% increase compared to the same quarter in the prior year. Net income, however, decreased by 44.3%, to USD 200.4 million, year over year.
Stock Price
The stock opened at $131.0, however after reports of their earnings were announced, it plummeted by 12.9%, closing at $123.9. This was a dramatic drop from the prior closing price of $142.2. Although this was an increase from the previous year’s earnings, investors were left unimpressed by the disappointing numbers. Their earnings report was far from the expectations that analysts had predicted and this caused DOLLAR TREE‘s stock to take a dive. 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
At GoodWhale, we analyzed the financials of DOLLAR TREE and found that it is a medium risk investment in terms of financial and business aspects. We assessed the company’s financials to determine the risk rating for potential investors. We looked at the balance sheet and found one risk warning in particular. We recommend that potential investors register on our website to check out this risk warning before making any decisions regarding investing in DOLLAR TREE. We also suggest that investors look into other aspects of the company such as its business performance and other financial metrics in order to make an informed decision. Ultimately, DOLLAR TREE may be a good investment opportunity for some investors, but it is important to evaluate the risks involved before deciding to invest. GoodWhale is here to provide the data and tools necessary to make an educated decision. 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‘s second quarter of FY2024 saw an increase in total revenue of 8.2%, to a total of USD 7325.3 million. However, net income fell 44.3% year-on-year to USD 200.4 million; as a result, the stock price dropped on the same day. Investors should keep an eye on the company as it attempts to turn a profit in the coming quarters, looking at factors such as costs of goods sold and sales growth for a more in-depth analysis. With a closer look, investors can really assess the long-term potential of the company, and decide whether it is a good investment opportunity or not.
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