By Michael Calia
Dollar Tree Inc. offered a downbeat outlook for the new year as
the discount retailer works toward closing its deal to buy fellow
low-cost chain Family Dollar Stores Inc.
Still, the company's results for the most recent quarter edged
expectations.
Dollar Tree said it expects to post $3.30 to $3.50 a share in
earnings, along with $9.21 billion to $9.45 billion in net sales,
for the new year. Analysts polled by Thomson Reuters were expecting
$3.57 a share and $9.4 billion in revenue for the year.
Dollar Tree's $8.5 billion deal to buy Family Dollar is awaiting
approval from the Federal Trade Commission, and it said Wednesday
that it is working to close the deal by April 27.
Dollar Tree had warned earlier this month that the FTC is
reviewing more than 500 stores involved in the Family Dollar deal.
Dollar Tree, likewise, has said it expected to divest about 300
stores, a much smaller number than the divestitures that were
projected if Dollar General Corp. had succeeded in its unsolicited,
$9.1 billion bid for Family Dollar.
Dollar Tree said Wednesday that it still believes the FTC will
require the company to divest no more than about 300 stores, and it
hopes that it hopes to reach a deal on divestitures early next
month.
Same-store sales rose 5.6% in the quarter on a constant-currency
basis. The number of transactions rose 5%.
For the period ended Jan. 31, Dollar Tree posted a profit of
$206.6 million, or $1 a share, down from $213 million, or $1.02 a
share, a year earlier.
Excluding certain items, the company posted earnings of $1.16 a
share in the most recent quarter.
Net sales improved 11% to $2.48 billion. Analysts had projected
$1.15 a share in earnings and revenue of $2.47 billion.
For the current quarter, Dollar Tree said it expected to post 69
cents to 74 cents a share in earnings and $2.15 billion to $2.20
billion in net sales. Analysts were projecting 76 cents a share and
$2.21 billion in revenue.
Write to Michael Calia at michael.calia@wsj.com
Access Investor Kit for Dollar General Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2566771059
Access Investor Kit for Dollar Tree, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2567461080
Access Investor Kit for Family Dollar Stores, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US3070001090
Access Investor Kit for KKR & Co. LP
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US48248M1027
Subscribe to WSJ: http://online.wsj.com?mod=djnwires