Research Desk Line-up: Ollie's Bargain Outlet Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 16, 2017 / Pro-Trader Daily publishes post-earnings coverage on Dollar Tree, Inc. (NASDAQ: DLTR) following the Company's release of its first quarter fiscal 2017 earnings results on May 25, 2017. The leading operator of discount variety stores met top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Discount, Variety Stores industry. Pro-TD has currently selected Ollie's Bargain Outlet Holdings, Inc. (NASDAQ: OLLI) for due-diligence and potential coverage as the Company announced on May 31, 2017, its financial results for Q1 FY17 which ended on April 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Ollie's Bargain Outlet when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DLTR; also brushing on OLLI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=DLTR

http://protraderdaily.com/optin/?symbol=OLLI

Earnings Reviewed

For its first fiscal quarter ended April 29, 2017, Dollar Tree's consolidated net sales increased 4.0% to $5.29 billion compared to $5.09 billion in Q1 2016. The Company's revenue number matched analysts' expectations of $5.29 billion.

During Q1 2017, Dollar Tree's enterprise same-store sales grew marginally by 0.5%, driven by growth in average ticket and comparable transaction count. In the reported quarter, same-store sales for the Company's Dollar Tree banner increased 2.5%, representing the 37th consecutive quarter of positive same-store sales. For the Family Dollar banner, total sales increased 0.5% to $2.72 billion in the reported, while same-store sales fell 1.2%.

Dollar Tree's gross profit rose 4.7% to $1.63 billion in Q1 2017 compared to $1.55 billion in Q1 2016. As a percentage of sales, the Company's gross margin totaled 30.8% in the reported quarter compared to 30.6% in the prior year's same quarter, principally driven by lower merchandise and freight costs, and partially offset by higher markdowns. For the Family Dollar banner, gross profit margin declined 30 basis points to 26.9% and operating margin was 4.6% in the reported quarter.

During Q1 2017, Dollar Tree's selling, general, and administrative expenses came in at 23.4% of sales compared to 22.3% of sales in Q1 2016. Excluding the receivable impairment charge of $50.9 million, the Company's selling, general, and administrative expenses were 22.5% of sales, with the increase in expenses as a percentage of sales, attributed to higher payroll expenses and advertising expenses, partially offset by lower depreciation

Dollar Tree reported that operating income, including the receivable impairment charge, decreased 7.1% to $388.8 million, or 7.4% of sales, in Q1 2017 compared with $418.7 million, or 8.2% of sales, in Q1 2016. Excluding the receivable impairment charge, the Company's adjusted operating income increased 5.0% to $439.7 million compared with $418.7 million in the prior year's corresponding quarter, while adjusted operating income margin improved to 8.3% in the quarter under review from 8.2% in the year ago same period.

For Q1 2017, Dollar Tree's net income, including the receivable impairment charge, fell $32.2 million to $200.5 million and diluted earnings per share was $0.85 compared to $0.98 in Q1 2016, which included a one-time tax rate benefit of $0.09 per share related to state tax planning. Post adjusting the receivable impairment charge and the prior year same quarter's one-time tax benefit, the Company's adjusted earnings improved 10.1% to $0.98 per diluted share versus an adjusted earnings of $0.89 per diluted share in the year earlier comparable quarter, and also met Wall Street's expectations for earnings of $0.98 per share.

Store Update

During Q1 2017, Dollar Tree opened 164 stores comprising of 89 Dollar Trees and 75 Family Dollars. The Company expanded or relocated 51 stores, consisting of 35 Dollar Trees, 16 Family Dollars, and closed 16 stores - 5 Dollar Trees and 11 Family Dollars. The Company also added freezers and coolers at 131 Dollar Tree stores during the reported quarter, bringing its total of Dollar Tree stores with freezers and coolers to 4,918. Dollar Tree ended Q1 2017 with 14,482 stores, out of which 6,444 were Dollar Trees and 8,038 were Family Dollars. The Company's retail selling square footage at quarter-end was approximately 113.7 million square feet.

Outlook

For Q2 2017, Dollar Tree is forecasting consolidated net sales to be in the range of $5.18 billion to $5.28 billion, based on a slightly positive to low single-digit increase in same-store sales for the combined enterprise. Diluted earnings per share are estimated to be in the range of $0.80 to $0.88.

For FY17, Dollar Tree's consolidated net sales are now estimated to range from $21.95 billion to $22.25 billion compared to the Company's previously expected range of $21.94 billion to $22.33 billion. This estimate is based on a slightly positive to low single-digit increase in same-store sales and 3.9% square footage growth. Dollar Tree anticipates net income per diluted share for FY17 to be in the range of $4.17 and $4.43.

Stock Performance

On Thursday, June 15, 2017, the stock closed the trading session at $72.73, slipping 3.37% from its previous closing price of $75.27. A total volume of 3.96 million shares have exchanged hands, which was higher than the 3-month average volume of 2.65 million shares. Shares of the Company have a PE ratio of 19.95 and currently have a market cap of $17.35 billion.

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