Dollar Tree in 2Q17
Dollar Tree Stores (DLTR) reported its results for fiscal 2Q17 on Thursday, August 24, 2017. The results relate to the three-month period ended July 29, 2017.
The company came in ahead of Wall Street’s top-line and bottom-line expectations for the quarter. EPS (earnings per share) rose 37.5% YoY (year-over-year) to $0.99 on total sales of $5.3 billion (+5.7% YoY).
Dollar Tree is currently trading at a one-year forward PE (price-to-earnings) ratio of 16.5x compared to its three-year average of 20.0x. Competitor Dollar General (DG) has a similar valuation and trades at 16.8x.
The two companies are operating at a discount to variety store peers PriceSmart (PSMT) and TJX Companies (TJX), which are valued at 25.0x and 17.4x, respectively. Mass merchandisers Walmart (WMT) and Costco (COST) trade higher at 17.5x and 24.3x, respectively.
About Dollar Tree
Founded in 1986, Dollar Tree operates 14,581 stores across 48 US states and five Canadian provinces under the Dollar Tree and Family Dollar brands.
Dollar Tree offers merchandise, food, health and beauty care products, and everyday consumables for a fixed price of $1.
Family Dollar stores are multi-priced, small-box type stores that offer food, home products, tobacco, apparel, accessories, and personal electronics.
Investors looking for exposure to Dollar Tree through ETFs can consider the iShares Morningstar Mid-Cap Growth (JKH), which invests 1.1% of its total holdings in the company.
What this series is about
This series is an overview of Dollar Tree’s fiscal 2Q17 results. We’ll look at the company’s financial performance, recent stock market performance, current valuation, and analysts’ changes after the results.