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CHESAPEAKE, Va. — Dollar Tree reported consolidated net sales of $6.48 billion for the first quarter, up 3% compared with the prior year’s first quarter.
Enterprise same-store sales increased 0.8% on a constant currency basis (or 0.9% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for Dollar Tree increased 4.7%. Family Dollar same-store sales decreased 2.8%, compared to a very strong 15.5% increase in the prior year’s first quarter. The banner’s first quarter same-store sales increase, on a two-year stacked basis, was 12.7%. The company cited that performance as evidence that the Family Dollar brand continues to gain market share with its great value and compelling mix of products.
Net income in the first quarter increased 51.3% to $374.5 million and diluted earnings per share increased 53.8% to $1.60, compared to $1.04 in the prior year’s quarter.
During the quarter, the company opened 106 new stores, expanded or relocated 36 stores, and closed 19 stores. The company also completed 414 Family Dollar store renovations. Retail selling square footage at quarter-end was approximately 125.9 million square feet.
“Our record first quarter performance reflects the progress we continue to make on numerous initiatives to provide even greater value and convenience to our shoppers,” president and CEO Michael Witynski said. “Dollar Tree delivered its strongest quarterly same-store sales since 2017, while improving its operating margin by 290 basis points. Family Dollar effectively cycled a 15.5% comp sales increase from the prior year by driving its best post-merger quarterly operating profit.
“Combined, our enterprise produced positive same-store sales against a tough comparison, and a 220 basis point improvement in operating margin, driven by improved gross margins and better expense leverage.”
