Dollar Tree, Inc. ($DLTR) Earnings (Q4 FY21)

 Dollar Tree, Inc. ($DLTR) Earnings and Opinion:


Dollar Tree, Inc. is a company in the Consumer Defensive sector and operates in the Discount Stores industry. They currently operate through two segments (Dollar Tree and Family Dollar). The Dollar Tree segment sells merchandise at a fixed cost of $1.00 and operates 7,805 stores. The Family Dollar segment operates as more of a traditional retail shop with a wider variety of merchandise. Family Dollar currently has 7,880 stores and 11 distribution centers. The overall company was found in 1986 and is currently headquartered in Chesapeake, Virginia. The stock started trading publicly in 1995. 


Dollar Tree, Inc. EPS and Revenue (Q4 FY21):

  • EPS of $2.01 compared to estimates of $1.79
  • Revenue of $7.07B compared to estimates of $7.13B
  • EPS was down 5.63% (YOY) and Revenue was up 4.58%
Dollar Tree, Inc. EPS and Revenue (FY21):
  • EPS of $5.80
  • Revenue of $26.31B 
  • EPS was up 2.65% and Revenue was up 3.14%
Dollar Tree, Inc. Extra Results (FY21):
  • Repurchased $950 million in shares
  • Selling, general, and administrative expenses were down 0.6% (YOY)
  • Gross Margin was 29.4% compared to 30.5% last fiscal year
Opinion:
Personally, I have never looked into this stock. I pay attention to bigger companies in the Consumer Defensive sector. However, I thought it would be interesting to look into this company. I actually found out a lot about Dollar Tree while assessing the financial statements. First off, looking at their chart, they have shown a relative uptrend over their life as a company on the stock market. This is a positive note to start off with. The financial statements showed that they beat EPS expectations but missed revenue expectations for Q4. I don't think this was a big hit because they reported both increases in EPS and revenue for the full fiscal year, compared to last year. I also like that the repurchased a decent amount of shares back. I can see why the Gross margin was down a slight bit, probably due to supply chain issues. With a company like Dollar Tree, the supply chain plays a pivotal role in the operation of attaining inventory for sale. Then, of course, for them to trim selling, general, and administrative expenses while generating more revenue is ultimately impressive. You have to give credit to management for this, because it takes a lot of effort to cut costs and improve sales. Personally, I will never probably be a shareholder of this company. I think you can invest your money elsewhere to attain a better return. One thing this company lacks is a dividend, I think this strays investors away from this company. I would like to see them increase Net Income, so that they can initiate a dividend and give back to shareholders. 


*Information from Yahoo Finance, Dollar Tree, Nasdaq
*Estimates attained from Zacks

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