Dollar Tree Reports Third Quarter Earnings Results for FY2024
December 6, 2023
🌥️Earnings Overview
On November 29 2023, Dollar Tree ($NASDAQ:DLTR) revealed its earnings results for the third quarter of FY2024, which ended on October 31 2023. Total revenue for the quarter was USD 7314.8 million, showing an increase of 5.4% compared to the same period in 2023. Net income, however, decreased by 20.6%, amounting to USD 212.0 million.
Share Price
The retail giant reported that its stock opened at $117.3 and ended the day at $121.1, a gain of 4.4% from the previous closing price of 116.0. The company posted strong growth in revenue and net income, exceeding analysts’ expectations. The strong quarter was attributed to the retailer’s ability to capture market share in a challenging retail environment, as well as improved customer experience. DOLLAR TREE has also taken several steps to transform its brick and mortar stores into omni-channel models, allowing customers to shop online and pick up items from stores. The company is well-positioned for growth in the coming quarters given its focus on cost control and operational efficiency, allowing it to generate higher returns on investments and drive market share gains.
In addition, DOLLAR TREE’s new store openings and increasing traffic at its existing stores bode well for its future performance. 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 |
| 29.68k | 1.16k | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dollar Tree. More…
| Operations | Investing | Financing |
| 2.31k | -1.65k | -650.9 |
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 |
| 24.03k | 15.03k | 40.9 |
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 |
| 5.8% | -2.7% | 5.5% |
| FCF Margin | ROE | ROA |
| 2.2% | 11.3% | 4.2% |
Analysis
As GoodWhale, we have conducted an analysis of DOLLAR TREE‘s financials. Our Star Chart classifies DOLLAR TREE as a ‘rhino’, which we conclude is a company that has achieved moderate revenue or earnings growth. Generally speaking, this type of company may be of interest to value investors who are seeking a stable investment with limited risk of bankruptcy. We have assigned DOLLAR TREE a high health score of 8/10 based on our analysis of its cashflows and debt. This indicates that the company is capable of safely riding out any crisis without the risk of bankruptcy. In terms of profitability, DOLLAR TREE is strong in this particular category, but it is only medium in asset, growth and weak in dividend. Therefore, investors may want to look more closely into these factors before making a decision to invest. 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 strong total revenue growth of 5.4% in the third quarter of FY2024 compared to last year.
However, net income declined by 20.6%, amounting to USD 212.0 million. Investors responded positively to this news, with the stock price increasing the same day of the announcement. As such, Dollar Tree appears to be a promising stock for potential investors. The company is expected to continue to grow its revenue in the next quarters, and with careful management of expenses, its profits should also rise.
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