Dollar Tree (DLTR) 1Q16 Results: Continued Growth from Positive Comps and the Family Dollar Acquisition

Executive Summary

• Dollar Tree reported 1Q16 consolidated net sales of $5.09 billion, up 133.6% from the same period last year, including $2 billion in sales from acquired Family Dollar stores and new Dollar Tree stores. Revenues were in line with analysts’ estimates and were at the midpoint of the guidance range.
• Reported EPS was $0.98 (or $0.89, excluding a onetime tax benefit), versus the consensus estimate of $0.81.
• Dollar Tree’s comparable-store sales increased by 2.3% on a constant-currency basis, beating analysts’ estimate of 2.1%. This represents the 33rd consecutive quarter of positive same-store sales for Dollar Tree.