Dollar Tree (DLTR - Get Report) reported a fourth-quarter loss of $2.31 billion, or $9.66 a share, compared with a profit of $1.04 billion, or $4.37 a share, a year earlier, as the retailer recorded a $2.73 billion goodwill impairment charge related to the Family Dollar business.
Adjusted earnings for the quarter were $1.93 a share, up from $1.89 a share a year ago and ahead of analysts' expectations of $1.92. Sales for the quarter totaled $6.21 billion, compared with $6.36 billion a year ago. Wall Street was looking for $6.2 billion in sales. The company said it recorded a $13 million charge in the fourth quarter to write down certain store assets, including $6.1 million associated with impairment of favorable lease rights.
Looking ahead, Dollar Tree said it expects first-quarter revenue ranging from $5.74 billion to $5.85 billion, with earnings a share in the range of $1.05 to $1.15. Analysts' are looking for revenue of $5.81 billion.
Jim Cramer said that Gary Philbin, CEO of Dollar Tree, is considering Dollar Tree stores that have more than just $1 items.