Retail

Dollar Retail Chains Get What They Pay For With Earnings

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Both Dollar General Corp. (NYSE: DG) and Dollar Tree Inc. (NASDAQ: DLTR) announced their most recent quarterly reports on Thursday morning. Here’s the question: which discount retailer had the better report?

Dollar General said that it had $3.12 in earnings per share (EPS) and $8.70 billion in revenue in its fiscal second quarter. That topped consensus estimates of $2.44 in EPS and $8.35 billion in revenue, as well as the $1.74 per share and $6.98 billion posted in the same period of last year.

During the latest quarter, Dollar General net sales increased 24.4% year over year. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

At the same time, same-store sales increased 18.8%, due to an increase in average transaction amount but partially offset by customer traffic.

Dollar Tree reported its fiscal second-quarter results as $1.10 in EPS and $6.28 billion in revenue. Consensus estimates had called for EPS of $0.92 and revenue of $6.22 billion. The same period of last year reportedly had EPS of $0.76 on $5.74 billion in revenue.

Overall, enterprise same-store sales increased 7.2% year over year. This consisted of same-store sales growth of 11.6% in the Family Dollar segment and a same-store sales decrease of 3.1% in the Dollar Tree segment.

Dollar General stock was down about 2% to $200.67 Thursday morning, in a 52-week range of $125.00 to $206.98. The consensus price target is just $207.80.

Dollar Tree stock traded down more than 5% at $98.71 per share. The 52-week range is $60.20 to $119.71, and the consensus price target is $105.75.

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