Dollar Tree's holiday quarter same-store sales beat estimates

[March 06, 2019]  (Reuters) - Dollar Tree Inc reported better-than-expected quarterly same-store sales on Wednesday, as it drew more customers to its namesake stores and had the best growth in sales at its struggling Family Dollar business in the fiscal year.

Dollar Tree, which has been under pressure from activist investor Starboard Value LP to sell its underperforming Family Dollar business, announced on Wednesday it would close about 390 Family Dollar stores.

The Chesapeake, Virginia-based company reported a 2.4 percent rise in same-store sales during the fourth quarter ended Feb. 2.

Analysts on average expected a 1.5 percent rise in same-store sales, according to IBES data from Refinitiv

Same-store sales at Family Dollar rose 1.4 percent, its strongest rise in a year, while its name-sake brand showed a 3.2 percent increase in the quarter.

Analysts on average had expected same-store sales at Family Dollar and the company's namesake brand to rise by 0.08 percent and 2.94 percent, respectively.

The company reported a net loss of $2.31 billion, or $9.66 per share, compared to a profit of $1.04 billion, or $4.37 per share, a year earlier, as the retailer recorded a $2.73 billion goodwill impairment charge related to Family Dollar business.

Excluding items, the company earned $1.93 per share, beating Wall Street estimates by one cent.

Net sales fell to $6.21 billion from $6.36 billion, but beat analysts' estimate of $6.19 billion.

Shares of the company rose about 1.2 percent in premarket trading.

(Reporting by Soundarya J in Bengaluru; Editing by James Emmanuel)

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