Dollar Tree, Inc. (NASDAQ:DLTR) Q1 2019 Earnings Conference Call Transcript
May 30, 2019 • 09:00 am ET
Good day and welcome to Dollar Tree Inc's First Quarter Earnings Conference Call. Today's conference is being recorded.
At this time I'd like to turn the conference over to Mr. Randy Guiler, Vice President, Investor Relations. Please go ahead sir.
Thank you, Aaron. Good morning and welcome to our conference call to discuss Dollar Tree's performance for Q1 2019. Participating on today's call will be President and CEO, Gary Philbin; Family Dollar President, Duncan Mac Naughton and our CFO, Kevin Wampler.
Before we begin, I would like to remind everyone that various remarks that we will make about future expectations, plans and prospects for the company constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors included in our most recent press release most recent 8-K, 10-Q and Annual Report, which are on file with the SEC. We have no obligation to update our forward-looking statements and you should not expect us to do so.
At the end of our prepared remarks, we will open the call to your questions. (Operator Instructions)
Now, I will turn the call over to Gary Philbin, Dollar Tree's, President and Chief Executive Officer.
Gary M. Philbin
Thank you, Randy. Good morning everyone. I'm proud of our team's efforts throughout the first quarter. As many of the initiatives we discussed in Q4 have been kicked off and are progressing nicely. Our Dollar Tree team delivered a solid increase in same-store sales, while cycling its toughest quarterly compare from the prior year; and Family Dollar again demonstrated a sequential acceleration in comp sales. In fact the Family Dollar segment delivered its strongest quarterly same-store sales increase since we began reporting comps for the banner.
Results for the first quarter included a sales increase of 4.6% to $5.81 billion. Consolidated same-store sales increase of 2.2%. The Dollar Tree segment delivered its 45th consecutive positive comp quarter with a 2.5 comp. And Family Dollar, same-store sales delivered a positive 1.9%, despite the shift of early SNAP sales into Q4 from February.
GAAP earnings per share or a $1.12 on an adjusted basis excluding the accelerated rent expense for Family Dollar Stores scheduled to close in 2019, related to ASC 842. Diluted EPS was $1.14 within a $0.01 of the high end of our guidance range.
Other key highlights for the quarter included completing 372 Family Dollar H2 model renovations; completing 324 Dollar Tree snack zones; re-initiating our share buyback program purchasing $100 million worth of shares in the quarter; and continue to remain on track with our consolidation of store support centers. As many of our Family Dollar associates and new hires are now in the process of moving to the Chesapeake campus.
As we outlined in the previous call, due to the costs associated with our store optimization initiatives and store support center consolidation project year-over-year operating income is expected to be