Dollar Tree Earnings: DLTR Stock Slides 6% Despite Beating Q2 Estimates

Dollar Tree (NASDAQ:DLTR) earnings for the retail company’s second quarter of 2020 have DLTR stock heading lower on Thursday. That’s despite its diluted earnings per share of $1.10 easily beating Wall Street’s estimate of 92 cents. Its revenue of $6.28 billion also outdoes analysts’ estimate of $6.22 billion.

A Dollar Tree store (DLTR) during the day
Source: digitalreflections /

Here are some additional highlights from the most recent Dollar Tree earnings report.

  • Adjusted per-share earnings are up 44.7% from 76 cents during the same time last year.
  • Revenue for the quarter comes in 9.4% higher than the $5.74 billion reported in Q2 2019.
  • Operating income of $374.9 million is a 39.4% increase year-over-year from $268.9 million.
  • The Dollar Tree earnings report also includes a net income of $261.5 million.
  • That’s a 45% improvement over the company’s net income of $180.3  million in the same period of the year prior.

Mike Witynski, president and CEO of Dollar Tree, said the following in the earnings report.

“The teams delivered strong same-store sales of 7.2%, a 180 basis point improvement in gross profit margin, and a 130 basis point increase in operating profit margin, despite incurring COVID-19 and civil unrest-related costs exceeding $150 million in the quarter.”

Dollar Tree still isn’t providing guidance at this time due to the novel coronavirus. It initially withdrew its outlook back in March. Many other companies aren’t providing guidance due to the pandemic.

DLTR stock was down 6.3% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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