Dollar Tree

I am continuing to look at the non-food discounter sector and have carried out a small financial analysis in order to better assess the market situation.

Dollar General $DG (+1,64 %) and Dollar Tree $DLTR (+4,98 %) are clearly the heavyweights in the US market. Both have sales of over 30 billion dollars and are positive. However, compared to their competitors Dollarama $DOL (-0,51 %) only have a tiny profit margin.

The share prices of US companies have also fallen sharply in recent months. The US market is struggling with problems. Inflation and high costs are leading to smaller profit margins and poor future forecasts. Another major issue is the threat of tariffs on China, which is depressing share prices.

Dollarama, on the other hand, is a Canadian company and has at least nothing to do with China tariffs. The majority of the stores are located in Canada and South America, here under the Dollercity brand. The profit margins are really impressive for a "1 dollar store" and that is why the share has performed so extremely in recent months. Over the year, the share price has risen by 48%.

In my opinion, there is potential for further growth as the company continues to expand, especially in South America. South America is an exciting market for me anyway.

Philipp

@Philley

1Mo·

🧵 3

Of course, there is also a large network of non-food discount stores in the USA. With Dollar Tree ($DLTR (+4,98 %)), Dollar General ($DG (+1,64 %)) and Five Below ($FIVE (-2,19 %)), there are at least three listed companies. I have also included the off-price retailer TJX Companies, better known here as TK Maxx, on the list.

In FY2023, the leading non-food discounters Dollar Tree, Dollar General, Five Below and TJX Companies posted respectable sales and solid EBITDA performance, indicating robust demand and their efficiency strategies.

Dollar Tree generated sales of USD 30.6 billion and EBITDA of USD 3.004 billion. The discount giant was able to increase its performance through a broad product range and a successful store network.

Dollar General achieved the highest sales in this group with USD 37.8 billion and an EBITDA of USD 4 billion. The company benefited from its extensive presence and a strong price-performance strategy that appeals to price-conscious customers.

Five Below achieved sales of USD 3.1 billion and EBITDA of USD 516 million. Focusing on young customer groups and inexpensive trend articles, the company recorded further growth, albeit at a lower sales level than its established competitors.

TJX Companies, the parent company of TK Maxx, reported sales of USD 49.9 billion and the highest EBITDA in the Group at USD 6.1 billion. With off-price offers and an established brand, TJX was able to further expand its leading position in the market for affordable fashion and household goods.

You can invest directly in all companies. It is interesting to note that the asset managers Black Rock and Vanguard are invested in all US companies, in some cases with considerable stakes.

Part 1 https://getqu.in/AWbuxi/

2nd part https://getqu.in/4cohv8/

app.getquin.comPhilipp (@Philley) auf getquin

5 Commentaires

Homer@Simpson

1Mo

I don't know 🤔 it all looks like 💩 🤔

Maybe you'd rather $WMT $COST $CASY 🤔

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Voir toutes les 2 autres réponses

Aktien Stammtisch

@Aktien_Stammtisch

1Mo·

Dollar Tree $DLTR (+4,98 %) CEO Rick Dreiling steps down as Chairman and CEO due to health concerns. COO Michael Creedon Jr. steps in as interim CEO, while Edward Kelly becomes Chairman. The company remains on track with its Q3 guidance, noting that same-store sales have “tracked well” and expressing optimism for the upcoming holiday season.

Dollar Tree also reports strong progress on its strategic review of Family Dollar, exploring options like a sale or spin-off. They aim to complete this process with ongoing input from advisors. Additionally, Dollar Tree's board is actively searching for a permanent CEO, considering both internal and external candidates.

Creedon, who joined Dollar Tree in 2022 and expanded his oversight this year, expressed confidence in the company’s current direction, stating, "We’re excited about our trajectory and committed to finding the best path for Family Dollar.”

Aktien Stammtisch

@Aktien_Stammtisch

3Mo·

S&P500 Worst Performers September 2024 📉

Quelle: https://x.com/bespokeinvest/status/1832113048045158634

Aktien Stammtisch

@Aktien_Stammtisch

3Mo·

$DLTR (+4,98 %) | Dollar Tree Q2 Earnings Highlights:

🔹 Revenue: $7.37B (Est. $7.5B) 🔴; UP +0.7% YoY

🔹 Adj Diluted EPS: $0.67 (Est. $1.06) 🔴

🔹 Adjusted Net Income: $143.4M

FY2025 Guidance:

🔹 Revenue: $30.6B - $30.9B (Est. $31.19B) 🔴

🔹 Adj Diluted EPS: $5.20 - $5.60 (Est. $6.55) 🔴

Key Metrics:

🔹 Same-Store Net Sales Growth: Enterprise +0.7%, Dollar Tree +1.3%, Family Dollar -0.1%

🔹 Operating Income: $203.1M; DOWN -29.4% YoY

🔹 Adjusted Operating Income: $218.1M; DOWN -24.2% YoY

🔹 Gross Profit: $2.21B; UP +3.7% YoY

🔹 Gross Margin: 30.0%; UP 80 basis points

🔹 Selling, General, and Administrative Expenses: 27.3% of revenue (Q2 FY2023: 25.3%)

🔹 Cash Flow from Operations: $307M

🔹 Shares Repurchased: 0.75 million shares for $90.8M

Business Highlights:

🔸 Opened 127 new Dollar Tree stores and 28 new Family Dollar stores.

🔸 Converted approximately 1,600 Dollar Tree stores to an in-line multi-price format.

🔸 Generated $307 million in net cash from operating activities.

🔸 Repurchased 0.75 million shares for $90.8 million.

CEO Rick Dreiling's Commentary:

🔸 "We are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar, despite immense pressures from a challenging macro environment. Customers are responding favorably to initiatives like our expanded multi-price offering and we are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest in-line multi-price format."

CFO Jeff Davis' Insight:

🔸 "Our adjusted EPS of $0.67 was $0.38 below the midpoint of our previous outlook range. While the vast majority of this variance was attributable to an adjustment of our general liability accrual, a portion was attributable to a comp shortfall which reflected the increasing effect of macro pressures on the purchasing behavior of Dollar Tree’s middle- and higher-income customers."

Strategic Updates:

🔸 Ongoing review of strategic alternatives for the Family Dollar business segment, including potential sale, spin-off, or other disposition.

🔸 Implemented a comprehensive store portfolio optimization review, resulting in the closure of approximately 655 underperforming Family Dollar stores, with plans to close an additional 45 stores by the end of FY2024.

🔸 Tornado damage at the Marietta, Oklahoma distribution center led to $117M in losses, fully offset by insurance recoveries.

Revised FY2024 Outlook:

🔸 The updated full-year guidance reflects Q2 results, a more conservative sales outlook, incremental conversion costs for recently acquired 99 Cents Only Stores leases, and higher depreciation and amortization expenses.

Hennington Research🎄

@HennRes

6Mo·

What we can expect next week:

Monday, June 3:

S&P Flash U.S. Manufacturing PMI (May)
Construction Spending (April)
ISM Manufacturing (May)
Quarterly reports from GitLab ($GTLB (+6,98 %) ) and Science Applications International Corp. ($SAIC (+0 %) )

Tuesday, June 4:

Factory orders (April)
Job offers (April)
Quarterly reports from CrowdStrike Holdings ($CRWD (+2,85 %) ), Hewlett Packard Enterprise ($HPE (+2,55 %) ) and Bath & Body Works ($BBWI (+1,18 %) )

Wednesday, June 5:

S&P Flash U.S. Services PMI (May)
ADP Private Sector Employment (May)
ISM Services (May)
Trade deficit USA (April)
Quarterly reports from Lululemon Athletica ($LULU (+1,1 %) ), Dollar Tree ($DLTR (+4,98 %) ), Campbell Soup ($CPB (-1,32 %) ) and Five Below ($FIVE (-2,19 %) )

Thursday, June 6:

Initial claims for unemployment benefit (week ending June 1)
Quarterly reports from Samsara ($IOT ), Docusign ($DOCU (-0,55 %) ), Nio ($NIO (+2,12 %) ), J.M. Smucker ($SJM (+0,24 %) ) and Vail Resorts ($MTN (+0,85 %) )

Friday, June 7:

Labor Market Report USA (May)
Consumer Credit (May)
Wholesale inventories (April)

2 Commentaires

Hennington Research🎄@HennRes

6Mo

Im Bild: Canary Wharf

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Hennington Research🎄

@HennRes

9Mo·

The week summarized:

Monday

Oracle Corp. ($ORCL (-0,32 %) ) published quarterly results.

Tuesday

NFIB Small Business Optimism Index (February)
Consumer Price Index (February)
Quarterly results of On Holding AG ($ONON ), Kohl's ($KSS (+0,82 %) ), Manchester United PLC ($MANU (-0,18 %) ) and LoanDepot Inc. ($LDI (-2,62 %) )

Wednesday

Dollar Tree ($DLTR (+4,98 %) ), Lennar Corp. ($LEN (-1,16 %) ) and Williams-Sonoma Inc. ($WSM (+1,84 %) ) publish quarterly results.

Thursday

Retail sales in the USA (February)
Producer Price Index (February)
Business inventories (January)
Quarterly results from Adobe ($ADBE (+1,44 %) ), Dollar General ($DG (+1,64 %) ), Ulta Beauty Inc. ($ULTA (+0,22 %) ) and Dick's Sporting Goods Inc. ($DKS (-0,06 %) )

Friday

Empire State Manufacturing Survey (March)
Import Price Index (February)
Industrial Production (February)
Consumer sentiment (March)
Capacity utilization (February)
Quarterly results from Jabil Inc. ($JBL (+2,38 %) )

1 Commentaire

Hennington Research🎄@HennRes

9Mo

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