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Earnings Analysis: 
Dollar Tree Net Advances
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:27 AM EDT August 23 2006


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Dollar Tree Stores Inc., off-price retailer, reported Q2 earnings of 28 cents a share, up from a profit of 25 cents a share a year-ago. Sales rose 14.9% to $883.6 million from $769 million in the same period a year earlier. Same-store sales increased 4.2% in the quarter. The company topped analysts’ estimates by a penny.

 
Dollar Tree Stores Inc., (DLTR: chart), forecast earnings of 30 to 32 cents a share for Q3 on sales of between $895 million and $915 million. For the year, it sees earnings of $1.74 to $1.82 a share on sales of between $3.895 billion and $3.955 billion.

Tech Data Corp, (TECD: chart), distributor of IT products, reported a wider Q2 loss on 2.7% higher sales. The company posted a loss of $2.81 a share, compared with $1.02 in the year-earlier period. If not for special items, adjusted earnings were 1 cent a share compared with 27 cents. Sales reached $4.94 billion from $4.81 billion. The company miissed analysts’ estimates for a profit of 3 cents a share.

Brown Shoe Co. Inc, (BWS: chart), footwear company, reported Q2 earnings of 52 cents a share, up from a profit of 14 cents a share a year-ago. If not for costs related to strategic initiatives and net recoveries from insurance companies stemming from certain remediation costs, the company posted adjusted earnings of 41 cents a share in Q2. Sales rose 5%. The company topped analysts’ estimate for a profit of 40 cents a share. Brown Shoe had forecast adjusted earnings of 37 to 43 cents a share in the quarter. The company also unveiled a restructuring plan that includes exiting its Bass business.

American Woodmark Corp, (AMWD: chart), producer and distributor of kitchen cabinets, reported that Q1 net income rose 80% on 3% higher sales. Profit for Q1 was 82 cents a share, compared with \45 cents in the year-earlier period. The profit includes share-based compensation expense of 6 cents a share. The company beat analysts’ estimates of 66 cents a share. Sales reached $222.8 million from $215.6 million. The company expects Q2 net income to range 55 to 60 cents a share, compared with 37 cents in the year-earlier quarter.

Payless ShoeSource Inc, (PSS: chart), footwear retailer, reported Q2 earnings of 48 cents a share, up from a profit of 29 cents a share a year-ago. Sales rose 1.8% to $706.4 million from $693.9 million in the same period a year earlier. Same-store sales increased 2.2% in the quarter. The company missed analysts’ estimate for a profit of 53 cents a share. Looking ahead, the company said it expects cash used for capital expenditures to reach $120 million in fiscal 2006.
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