98.16 +0.22 (0.22%)
After hours: 4:24PM EDT
|Bid||92.00 x 900|
|Ask||98.15 x 1300|
|Day's Range||96.76 - 98.90|
|52 Week Range||68.69 - 105.82|
|PE Ratio (TTM)||16.39|
|Earnings Date||Aug 29, 2018 - Sep 4, 2018|
|Forward Dividend & Yield||1.16 (1.20%)|
|1y Target Est||105.38|
Fewer Americans on food stamps could mean lower sales for discount retailers. Purchases made using the Supplemental Nutrition Assistance Program, or SNAP, the acronym for food stamps, make up a good portion of sales for such retailers as Dollar Tree Inc. "At the dollar stores, SNAP benefits amount to about a mid-single-digit percentage of total sales," Joseph Feldman, senior managing director at Telsey Advisory Group told TheStreet on Thursday, June 14.
Dollar Tree (DLTR) and Dollar General (DG) have seen high volatility over the past year. Dollar General, which was trading at $94.90 as of June 8, has traded between the $65.97 and $105.82 over the last 12 months. Dollar Tree, now priced at $82.63, has been slightly more volatile. It moved within a 52-week range of $65.63–$116.50.
Cal Turner Jr., retired chief executive officer of Dollar General Corp. and this week's guest on Masters in Business, likes to explain how his father came up with the concept of dollar pricing. Department stores in Louisville, Kentucky, and Nashville, Tennessee, would run monthly advertisements for "dollar days,” one day each month when merchandise cost a dollar. Cal Sr. figured the retailers had to be making money on the discount days because they were clearly spending a lot on advertising and they kept on doing it.
As we discussed in Part 2 of this series, both Dollar Tree (DLTR) and Dollar General (DG) recently faced some pressure on same-store sales due to harsh weather conditions. “Now, to the timing shift of the holiday and colder-than-normal-spring weather behind us, we have seen a pick-up in sales trends at both Dollar Tree and Family Dollar in May. It’s still early in the quarter, but it’s gotten off to a positive start for both banners,” said Gary Philbin, president and CEO of Dollar Tree.
As we outlined in the previous part of this series, Dollar Tree (DLTR) and Dollar General (DG) missed same-store sales expectations during the first quarter of 2018 due to cold weather. Dollar Tree’s adjusted earnings per share expanded 21.4% YoY or year-over-year to $1.19. Dollar General, in comparison, posted a stronger increase of 32% YoY in the bottom-line to $1.36.
Both Dollar General (DG) and Dollar Tree (DLTR) reported their first-quarter results on May 5. Both fell short of top- and bottom-line expectations. Let’s discuss the top-line performance in this part of our series and look at profitability in the next part. Dollar General’s top line
Dollar stores, which typically sells inexpensive items at a single price, usually follow a small-box format and sell everything from clothing to food to cleaning supplies. The stores are located in smaller localities that are too small for a bigger player like Walmart (WMT). Their target customers are typically lower- and middle-income families.
Five Below (FIVE) reported its first-quarter results on June 6. Its adjusted EPS was $0.35, which was better than analysts’ estimate of $0.32. On a reported basis, EPS was $0.39, which more than doubled year-over-year. EPS was $0.15 in the first quarter of fiscal 2017. Higher revenue, leverage in its SG&A (selling, general, and administrative) expense rate, and a lower tax rate led to strong bottom-line numbers.
On June 6, Five Below (FIVE) reported strong numbers for its fiscal first quarter. That prompted ten analysts to raise their price targets for the stock.
My end-of-week morning train reads:• The contrarian wisdom of George Costanza (Economist)• The NFL’s Next Billionaire Owner Won’t Be a Person (Institutional Investor)• A Once-Hot Fidelity Fund Is Outperforming Again.
Discount retailer Five Below Inc (NASDAQ:FIVE) is enjoying this year what many of its competitors can only dream about — robust market performance. Since its January opener, FIVE stock has jumped nearly 22%. In contrast, Dollar General Corp. (NYSE:DG) is only up a pedestrian 2%, while Dollar Tree, Inc. (NASDAQ:DLTR) has dropped an alarming 24%.
The shares of so-called dollar stores have suffered as U.S. shoppers have started spending more at bargain retailers with focused concepts and big discount chains. Once thought to be insulated from the retail industry's challenges, the dollar stores, which got the name because they try to price items for $1 or less, such as Dollar General Corp (DG.N), Dollar Tree Inc (DLTR.O) and Big Lots Inc (BIG.N) derive much of their sales from household staples. Appealing to trend-watchers and bargain hunters has helped Ollie's and Five Below stand out while other discounters face intensifying competition from new entrants such as German chains Aldi and Lidl, analysts and investors said.
Comparable sales headwinds, shipping costs, food sales, and in-house branding were among the important topics recently discussed.
The world of e-commerce has evolved rapidly, and with half of all online searches now taking place on mobile phones, retailers have to be more sophisticated in how they market to customers, says Inbal Lavi, chief executive of performance-marketing company Webpals Group, which delivers high-value customers to online businesses. Lavi tells Barron's that her firm uses advanced statistical and prediction models to try to parse characteristics of customers, so to identify what shoppers find interesting. Such information is used to determine "the product, the creation of the ad that will work best for you, even the time of day you see it, so that companies can target the most relevant products for a specific user and the use the most relevant triggers that lead to an acquisition." "Acquisition," in the fast-changing world of retail, means completion of a purchase.
The Zacks Analyst Blog Highlights: Visa, Medtronic, Salesforce, Dollar General and Martin Marietta
Below is a list of names for those charts we believe are showing technical characteristics of either bullish or bearish reversal patterns that occurred over the past week. Bullish reversals imply institutional accumulation and the potential for higher prices.
Kirkland's (KIRK) top and bottom lines improve in a year and surpass the Zacks Consensus Estimate in Q1. E-commerce sales surge 39%.
A chilly spring dampened customer traffic last quarter, but the discount retailer still projects healthy operating gains for the full year.
When we took a look at Dollar General Corp. In the daily bar chart of DG, below, we can see that prices sold off sharply to close below the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has been neutral since late January.
Dollar General Corp. (NYSE:DG) is learning this lesson the hard way. After a disappointing first-quarter earnings report, DG stock plummeted 9.4%. Needless to say, the substandard performance shocked Wall Street.