Discount treasure-hunt retailer Dollar Tree (NASDAQ:DLTR) missed Wall Street’s revenue expectations in Q4 CY2024, with sales falling 42.1% year on year to $5 billion. Next quarter’s revenue guidance of $4.55 billion underwhelmed, coming in 42.1% below analysts’ estimates. Its non-GAAP profit of $2.29 per share was 4.3% above analysts’ consensus estimates.
Dollar Tree (DLTR) Q4 CY2024 Highlights:
Company to sell Family Dollar unit (acquired in 2015); Family Dollar Q4 and 2024 results reported as discontinued operations, and Consensus did not take this into account, making comparisons not applicable
Revenue: $5 billion vs analyst estimates of $8.23 billion (42.1% year-on-year decline, 39.3% miss)
Adjusted EPS: $2.29 vs analyst estimates of $2.20 (4.3% beat)
Adjusted EBITDA: $239.5 million vs analyst estimates of $913 million (4.8% margin, 73.8% miss)
Management’s revenue guidance for the upcoming financial year 2025 is $18.8 billion at the midpoint, missing analyst estimates by 41.3% and implying -31.8% growth (vs -8.4% in FY2024)
Adjusted EPS guidance for the upcoming financial year 2025 is $5.25 at the midpoint, missing analyst estimates by 11.9%
Operating Margin: 10.7%, up from 8.8% in the same quarter last year
Free Cash Flow Margin: 10.1%, up from 5.4% in the same quarter last year
Locations: 16,503 at quarter end, down from 16,774 in the same quarter last year
Same-Store Sales rose 2% year on year, in line with the same quarter last year
Market Capitalization: $14.44 billion
In the fourth quarter, our team was focused on successfully closing out the year, bringing the strategic review to a favorable conclusion, and setting Dollar Tree on a path to realize its full potential to create long-term value for our associates, customers, and shareholders,” said Mike Creedon, Chief Executive Officer.
Company Overview
A treasure hunt because there’s no guarantee of consistent product selection, Dollar Tree (NASDAQ:DLTR) is a discount retailer that sells general merchandise and select packaged food at extremely low prices.
Discount Grocery Store
Traditional grocery stores are go-tos for many families, but discount grocers serve those who may not have a traditional grocery store nearby or who may have different spending thresholds. Certain rural or lower-income areas simply don’t have a grocery store. Additionally, some lower-income families would prefer to buy in smaller quantities than available at most stores (think one or two paper towel rolls at a time). While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of buying food. Furthermore, those buying small quantities for immediate need are even less likely to leverage e-commerce for these purposes.
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nasdaq-dltr-misses-104301095.html
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