23 Feb

The Dollar Tree: What Can We Expect from 4Q15?

WRITTEN BY Mark Jonker

Expectations from 4Q15

The Dollar Tree (DLTR) is expected to release its earnings for 4Q15 on February 24, 2015. Wall Street has estimated that the net sales of the company will be in the range of $5.4 billion, which is also the company’s outlook. The company’s adjusted EPS (earnings per share) are estimated to decrease by 8.0% on a YoY (year-over-year) basis to around $1.07. This is due to costs associated with the acquisition and integration of Family Dollar.

The Dollar Tree: What Can We Expect from 4Q15?

3Q15 earnings highlights

In fiscal 3Q15, Dollar Tree’s (DLTR) adjusted EPS fell below Wall Street estimates, coming in at $0.49 versus the estimated $0.53, excluding the acquisition and integration costs. The net sales increased by 136.0% due the addition of $2.7 billion in sales from the Family Dollar segment and 5.9% growth in same-store sales in the Dollar Tree segment of the company.

About the company

Dollar Tree (DLTR) is a leading discount variety retailer in North America. It sells merchandise for $1 through its Dollar Tree segment, which had 5,841 stores as of October 31, 2015. Its multi-price retail segment, Family Dollar, had 8,197 stores as of the same date.

An investor wanting to invest in Dollar Tree (DLTR) could invest in ETFs such as the SPDR S&P Retail ETF (XRT) and the SPDR Consumer Discretionary ETF (XLY), which have exposure to prominent US consumer discretionary stocks such as Amazon.com (AMZN), Dollar General (DG), and The Home Depot (HD). In the next article, we’ll have a look at how the top line of the company is performing.

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