The discount retail chain recorded net income of $1.02 a share, 3 cents lower than analysts surveyed by Thomson Reuters had expected.
In the three months to Feb. 2, the company generated revenue of $2.23 billion, slightly lower than the year-ago quarter's $2.25 billion and $46.8 million below consensus.
Comparable-store sales increased 1.2% over the quarter, adding to a 2.4% increase a year earlier.
"Dollar Tree delivered record earnings and our comparable-store sales grew, despite severe weather, a shorter Holiday selling period and a challenging economic environment. More customers are shopping Dollar Tree, responding to our incredible values and convenient shopping experience," said CEO Bob Sasser in a statement.
Management guides current-quarter revenue between $1.98 billion and $2.04 billion, based on low single-digit comparable-store sales growth. Diluted earnings are expected between 63 cents and 68 cents a share.
For the full year, the company estimates sales between $8.35 billion and $8.58 billion, below consensus of $8.6 billion. Diluted earnings are expected in the range of $2.91 to $3.13 a share, lower than expectations of $3.25 a share.
TheStreet Ratings team rates DOLLAR TREE INC as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate DOLLAR TREE INC (DLTR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: DLTR Ratings Report