Dollar Tree Q1 Profit Misses Estimates - Quick Facts

(RTTNews) - Dollar Tree, Inc. (DLTR), North America's leading operator of discount variety stores selling everything for $1 or less, reported first quarter net income, including acquisition-related costs, of $69.5 million or $0.34 per share, compared to $138.3 million or $0.67 per share, prior year. Excluding acquisition-related costs, net income increased approximately $8.0 million to $146.3 million and earnings per share increased 6% to $0.71.

On average, 26 analysts polled by Thomson Reuters expected the company to report profit per share of $0.75 for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales increased 8.8% to $2.18 billion from $2.00 billion in the prior year's first quarter. Analysts expected revenue of $2.20 billion for the quarter.

Consolidated same-store sales increased 3.4% on a constant currency basis. Adjusted for the impact of Canadian currency fluctuations, the same-store sales increase was 3.1%.

The company said its sales performance was negatively impacted by delayed receipts at four of the company's 10 distribution centers related to the west coast port congestion and the previously disclosed estimate of $8 million impact from the holiday calendar shift.

For the second quarter of 2015, the company estimates consolidated net sales to range from $2.17 billion to $2.23 billion, based on a low to low-mid single-digit increase in same-store sales and 8.0% square footage growth. Earnings per share, excluding acquisition-related costs, are expected to range from $0.63 to $0.68. Analysts expect the company to report second-quarter earnings per share of $0.70 on revenue of $2.23 billion.

For full-year 2015, the company expects consolidated net sales to range from $9.24 billion to $9.42 billion compared to the company's previous expected range of $9.21 billion to $9.45 billion. This estimate is based on a low to low-mid single-digit increase in same-store sales, and 7.3% square footage growth. The company now anticipates net income per share for full-year 2015, excluding acquisition-related costs, will range from $3.32 to $3.47. This compares to its previous guidance, excluding acquisition-related costs, of $3.30 to $3.50. Analysts expect the company to report 2015 earnings per share of $3.49 on revenue of $9.41 billion.

Dollar Tree announced the company continues to make progress with the Federal Trade Commission and divestiture buyers in order to complete the pending acquisition of Family Dollar. The company intends to close the proposed merger in early July 2015.