Table of Contents
CHESAPEAKE, Va. — Dollar Tree Inc. reported on Thursday a 9.9% rise in gross profit in its third quarter on its strongest quarterly sales growth since 2011.
Dollar Tree Inc. reported on Thursday a 9.9% rise in gross profit in its third quarter on its strongest quarterly sales growth since 2011.
 |
The company posted a profit of $133 million, or 64 cents a share, in the three months ended November 1, up from $125.4 million, or 58 cents a share, a year earlier. Excluding costs for acquisition activities, earnings were 69 cents a share.
The company also altered its outlook for the year, noting that it now expects earnings of between $2.97 and $3.04 per share. Previously, it had projected earnings of $2.94 to $3.06 per share on projected revenue of $8.52 billion to $8.58 billion, which has been revised to between $8.44 billion and $8.55 billion.
"I am extremely pleased with our third quarter performance," remarked Bob Sasser, Dollar Tree’s president and chief executive officer. "Excluding acquisition costs, we delivered a company-record third quarter operating margin of 11.2%. Our 5.9% same-store sales growth was our strongest comp since 2011 and represented our 27th consecutive quarter of positive same-store sales."
Dollar Tree posted consolidated net sales of $2.1 billion in the quarter.
The company pointed out that the results included $14.3 million in costs tied to its ongoing effort to merge with Family Dollar Stores Inc.
Dollar Tree opened 117 stores in the period. It also expanded or relocated 18 stores and closed one store. At quarter’s end, the company had 5,282 discount variety stores that sell everything for $1 or less. Its retail selling square footage increased 6.8% from a year ago, to 45.8 million square feet.
