Dollar Tree (DLTR) generated net sales of $6.21 billion in the fourth quarter of fiscal 2018, which ended on February 2. The company’s fourth-quarter sales fell 2.4% on a year-over-year basis. The sales beat analysts’ estimate of $6.19 billion. The company’s top line was impacted negatively by an extra week in the fourth quarter of fiscal 2017, which contributed sales of $406.6 million. The company’s fourth-quarter same-store sales rose 2.4% on a constant currency basis due to a 3.2% rise in the same-store sales for the Dollar Tree banner and a 1.4% rise in Family Dollar’s same-store sales.
For the Dollar Tree segment, the fourth quarter was the 44th consecutive quarter of same-store sales growth.
For fiscal 2018, Dollar Tree’s net sales grew 2.6% to $22.8 billion. The company’s fiscal 2018 same-store sales grew 1.7% due to a 3.3% rise in the Dollar Tree banner’s same-store sales and 0.1% growth in the Family Dollar banner’s same-store sales.
Dollar Tree has been investing in revamping its Family Dollar stores to improve its sales. In Part 1 of this series, discussed the company’s store optimization plans. The company has also been adding freezers and coolers to more stores to offer more consumables.
Dollar Tree expects its fiscal 2019 net sales to be $23.45 billion–$23.87 billion. Dollar Tree expects its fiscal 2019 same-store sales to grow by low single-digits.
Dollar General (DG), which is scheduled to announce its results on March 14, is expected to deliver 7.7% growth in its fourth-quarter sales. Analysts expect Dollar General’s sales to rise ~9.0% to $25.6 billion in fiscal 2018.
Next, we’ll discuss Dollar Tree’s margins.