Dollar Tree, Inc. (DLTR) has reported 40.52 percent jump in profit for the quarter ended Jan. 28, 2017. The company has earned $321.80 million, or $1.36 a share in the quarter, compared with $229 million, or $0.97 a share for the same period last year. Revenue during the quarter grew 5.03 percent to $5,635.30 million from $5,365.30 million in the previous year period. Gross margin for the quarter expanded 126 basis points over the previous year period to 32.07 percent. Total expenses were 89.59 percent of quarterly revenues, down from 91.25 percent for the same period last year. This has led to an improvement of 165 basis points in operating margin to 10.41 percent.
Operating income for the quarter was $586.50 million, compared with $469.70 million in the previous year period.
"We are pleased with our overall performance for fiscal 2016," stated Bob Sasser, chief executive officer. "For the fourth quarter, both the Dollar Tree and Family Dollar banners delivered positive growth in same-store sales. Gross margin and operating margin rates improved and EPS grew 40.2% from the prior years quarter, exceeding the upper end of our guidance range. For the year, we opened 584 new stores, exceeded $20 billion in sales, delivered record earnings, and continued to make significant progress on our integration of Family Dollar."
For the first-quarter, Dollar Tree expects revenue to be in the range of $5,260 million to $5,350 million. Dollar Tree expects revenue to be in the range of $21,940 million to $22,330 million for financial year 2017. The company projects diluted earnings per share to be in the range of $0.91 to $0.98 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $4.20 to $4.56.
Operating cash flow improves significantly
Dollar Tree, Inc. has generated cash of $1,673.30 million from operating activities during the year, up 108.51 percent or $870.80 million, when compared with the last year. The company has spent $483.60 million cash to meet investing activities during the year as against cash outgo of $6,978.40 million in the last year. It has incurred net capital expenditure of $563.80 million on net basis during the year, up 17.46 percent or $83.80 million from year ago.
The company has spent $1,060.50 million cash to carry out financing activities during the year as against cash inflow of $6,048.80 million in the last year period.
Cash and cash equivalents stood at $866.40 million as on Jan. 28, 2017, up 17.70 percent or $130.30 million from $736.10 million on Jan. 30, 2016.
Working capital remains almost stable
Working capital of Dollar Tree, Inc. remained almost stable for the quarter at $1,832.10 million, when compared with the previous year period. Current ratio was at 1.87 as on Jan. 28, 2017, down from 1.88 on Jan. 30, 2016.
Days inventory outstanding has decreased to 34 days for the quarter compared with 35 days for the previous year period. At the same time, days payable outstanding went down to 13 days for the quarter from 15 for the same period last year.
Debt comes down
Dollar Tree, Inc. has recorded a decline in total debt over the last one year. It stood at $6,321.80 million as on Jan. 28, 2017, down 13.95 percent or $1,024.60 million from $7,346.40 million on Jan. 30, 2016. Total debt was 40.26 percent of total assets as on Jan. 28, 2017, compared with 46.20 percent on Jan. 30, 2016. Debt to equity ratio was at 1.17 as on Jan. 28, 2017, down from 1.67 as on Jan. 30, 2016. Interest coverage ratio improved to 6.60 for the quarter from 4.09 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
