Dollar General, Dollar Tree And Abercrombie Q2 Results Top View, But Tiffany Sales Miss

(RTTNews) - Dollar General Corp.(DG) reported a profit for the second quarter that increased 84.6 percent from last year, while Dollar Tree Inc.'s (DLTR) quarterly profit rose 45 percent. Abercrombie & Fitch Co. (ANF) posted net income for the second-quarter compared to a net loss in the prior year. Tiffany & Co.'s (TIF) second-quarter profit dropped 76.6 percent.

The second-quarter results of Dollar General, Dollar Tree and Abercrombie & Fitch topped analysts' estimates. But, Tiffany's quarterly net sales missed their estimates.

Abercrombie & Fitch expects net sales for the third quarter of fiscal 2020 to be down in the range of 15 percent to 20 percent as compared to last year.

Tiffany currently anticipates its sales for the fourth quarter ending January 31, 2021 to reflect a mid single-digit decline as compared to the same quarter for fiscal 2019.

Tiffany projects fourth quarter 2020 earnings per share to show a high single-digit improvement on an as reported basis and a low single-digit improvement on a non-GAAP basis as compared to the same quarter for fiscal 2019.

Dollar General reported net income of $787.6 million for the second quarter of 2020, an increase of 84.6 percent from last year's $426.6 million, with earnings per share improving to $3.12 from $1.65 in the previous year.

Both quarterly earnings per share and net sales beat analysts' estimates.

Earnings per share rose 79.3 percent from adjusted earnings per share of $1.74, prior year. On average, 25 analysts polled by Thomson Reuters expected the company to report earnings per share of $2.44 for the second quarter. Analysts' estimates typically exclude special items.

Net sales for the second-quarter increased 24.4 percent to $8.68 billion from $6.98 billion in the second quarter of 2019. Analysts expected revenue of $8.35 billion for the quarter. The net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

Same-store sales for the second-quarter increased 18.8 percent compared to the second quarter of 2019, driven by an increase in average transaction amount, partially offset by a decline in customer traffic. The company believes consumer behavior driven by COVID-19 had a significant positive effect on net sales and same-store sales.

The company did not issue updated fiscal 2020 sales or earnings per share guidance at this time.

For fiscal year 2020, the company expects share repurchases of about $2.5 billion.

For fiscal 2020, the company now projects 2,780 real estate projects, including 1,000 new store openings, 1,670 mature store remodels, and 110 store relocations, compared to its previous expectation of 2,580 real estate projects.

On August 25, 2020, the company declared a quarterly cash dividend of $0.36 per share , payable on or before October 20, 2020 to shareholders of record on October 6, 2020.

Meanwhile, Dollar Tree reported that its net income for the second-quarter rose 45 percent to $261.5 million from last year's $180.3 million. Earnings per share for the quarter increased 44.7 percent to $1.10 from $0.76 in the prior year. Analysts expected to report earnings of $0.92 per share for the second-quarter.

Earnings per share and quarterly net sales topped analysts' expectations.

Consolidated net sales increased 9.4 percent to $6.28 billion from $5.74 billion in the prior year's second quarter. Wall Street analysts had a consensus revenue estimate of $6.22 billion for the quarter. Enterprise same-store sales increased 7.2 percent. Same-store sales for Family Dollar increased 11.6 percent. Dollar Tree same-store sales increased 3.1 percent.

The company did not issue updated guidance at this time, due to the expectation of continued volatility and uncertainty.

The company continues to expect the completion of 500 new store openings-- which consists of 325 Dollar Tree and 175 Family Dollar-- and 750 Family Dollar H2 store renovations in fiscal 2020.

Abercrombie & Fitch posted net income attributable to the company for the second-quarter of $5.46 million or $0.09 per share, compared to a net loss of $31.14 million or $0.48 per share in the previous year. The prior year results included the adverse impact from flagship store exit charges of about $0.50 per share, net of estimated tax effect.

Adjusted net income for the latest-quarter was $0.23 per share. On average, 13 analysts expected the company to report a loss per share of $0.83 for the quarter.

Net sales were $698.33 million, down 17 percent from the previous year, reflecting the adverse impact of COVID-19 on store sales. Analysts expected revenue of $658.44 million for the quarter. But digital net sales increased 56 percent to $386 million, reflecting robust growth in every month of the quarter.

The company has seen, and expects to continue to see, material adverse impacts as a result of COVID-19. As a result, the company expects net sales for the third quarter of fiscal 2020 to be down in the range of 15 percent to 20 percent as compared to last year.

Tiffany & Co. reported that its second-quarter net income dropped 76.6 percent to $31.9 million from $136.3 million in the previous year. On a per share basis, net income was $0.26 compared to $1.12 in the previous year.

Earnings per share topped analysts' expectations, while quarterly net sales missed their estimates.

Excluding certain items, net earnings for the latest-quarter were $39 million, or $0.32 per share. Analysts expected the company to report earnings of $0.19 per share for the quarter.

Worldwide net sales declined 29 percent to $747.1 million from $1.05 billion in the previous year. Analysts expected revenues of $772.39 million for the quarter.

Comparable sales declined 24% from the prior year; on a constant-exchange-rate basis, worldwide net sales declined 28% from the prior year and comparable sales declined 23% from the prior year.

In Thursday regular trading, DG was trading at $203.80, down $0.29 or 0.14 percent. DLTR was trading at $100.48, down $3.76 or 3.61 percent.

ANF was trading at $12.49, up $1.36 or 12.22 percent. TIF was trading at $123.92, up $2.40 or 1.97 percent.