US discount variety earnings

Good to see Perennial back above 5% again. They obviously have some confidence in mgt delivering on their guidance.
They might also be encouraged by the recent results of US discount variety retailers. Their results were strong and their share prices have spiked over the past week (and are priced at >3x TRS).



- 'Dollar Tree turned in a strong quarterly performance that blew past profit and sales forecasts as consumers' love affair with dollar stores shows no signs of abating. Dollar Tree earned 99 cents per share, beating the analysts' estimate of 87 cents per share. Shares up 8%'

- 'Bank of America View Dollar General As A Strong Cash Generator That's Insulated From Online Retailers & Peers.'


While I agree that Kmart, Aldi etc are great competitors, the US is much more competitive than Australia (and they have Aldi, Lidl, Amazon and many more) and the discount operators there are still able to thrive. TRS remains a relevant format, but the question is whether the current mgt team are the right ones to make it work. The next 6 months should answer that and presumably a guidance miss will force the Boards hand. I'm also looking forward to Sudano buying some stock as it is extremely cheap if he believes his own guidance.