Retail

Dollar Retail Chains Get What They Pay For With Earnings

IcemanJ / Getty Images

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.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.