Dollar Tree surpasse son estimation de revenus pour le deuxième trimestre

Jharon Martis, Director of Consumer Studies at LSEG, comments: « More retailers missed revenue estimates (38%) during this second quarter earnings season than the average of the previous four quarters (34.8%). However, since the pandemic and supply chain issues have eased, they are focusing on cost control and better management of freight and shipping expenses. As a result, more retailers are exceeding profit estimates (78%) than the average of the past four quarters (70.6%). » Table 1: Revenue and Earnings Dashboard – Second Quarter 2023 Source: LSEG I/B/E/S Dollar Tree Second Quarter 2023 Results Dollar Tree Inc (NASDAQ: DLTR) exceeded its revenue, earnings, and comparable store sales estimates for the second quarter. Traffic increased at both Dollar Tree and its Family Dollar brand during the quarter. Their private label is experiencing strong demand and they intend to expand their offerings accordingly. The discount retailer is also benefiting from all income levels seeking lower prices every day: « Over the past year, we have added nearly 5 million new customers across both segments, of which 2.6 million customers have a household income of over $125,000. Importantly, our research indicates that a significant percentage of these new customers return an average of 5 times per year after their initial visit. In fact, we now rank in the top 10 retailers in terms of annual activations of new customers. This positive traffic and new customer trends are generating strong market share gains. » (Source: DLTR Q2 2023 Earnings Call). Walmart Inc (NYSE: WMT) and Dollar Tree both generate high traffic from all types of consumers. Additionally, both companies are seeing an increase in general merchandise spending at a time when most retailers are providing cautious guidance due to inflation, the current trend towards services, and a cautious consumer. Dollar Tree stated that « regarding the consumer buying behavior shift towards consumables industry-wide, we believe this reflects the current macroeconomic environment and represents a rebound after years of higher discretionary category spending. » We believe we are gaining in consumables as more customers consider Dollar Tree and Family Dollar attractive destinations in terms of value (Source: DLTR Q2 2023 Earnings Call). Despite weakness in the apparel sector, Target (NYSE: TGT), Kohl’s (NYSE: KSS), and Macy’s (NYSE: M) all cited strength in beauty during their earnings calls. As a result, Ulta Beauty is poised to report another strong quarter with a 6.3% comps increase, despite challenging comparisons to a year ago. On the other hand, Gap (NYSE: GPS) and Nordstrom (NYSE: JWN) are expected to announce weak comps after market close today. Nordstrom is expected to post a -8.6% comps decrease, followed by -2.6% for Gap Inc., where Banana Republic faces the toughest year-over-year comparison and is estimated at -4.5% comps. Meanwhile, its Old Navy brand has an estimated -3.3% comps, and the Gap division has an estimated -1.0% comps. Here are the second quarter 2023 earnings and comparable store sales estimates for companies reporting this week: Graph 2: Second Quarter 2023 Sales and Earnings Projections for Comparable Stores Source: LSEG I/B/E/S Below is the latest second quarter 2023 retail earnings dashboard: Revenue: Mixed earnings growth forecasts for the second quarter 19.9% Among the companies included in the index that have released their second quarter 2023 results so far: 78, reported earnings above analysts’ expectations 5, reported earnings in line with analysts’ expectations 17, reported revenue below analysts’ expectations. Revenue: Mixed revenue growth forecasts for the second quarter 3.3% 62, reported revenue above analysts’ expectations 38, reported revenue below analysts’ expectations.