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CHESAPEAKE, Va. — Dollar Tree Inc. on Wednesday said it earned nearly $207 million in its fiscal fourth quarter on revenue of $2.5 billion.
Dollar Tree Inc. on Wednesday said it earned nearly $207 million in its fiscal fourth quarter on revenue of $2.5 billion.
For the full year, the retailer posted net income of $599.2 million, with diluted earnings per share up 6.6% to $2.90, on $8.6 billion in revenue. For the first time in its history, Dollar Tree exceeded 1 billion transactions in the year through January 31.
"I am extremely proud of our company’s performance in the fourth quarter and throughout 2014," said Bob Sasser, Dollar Tree’s chief executive officer. "Our quarterly comp sales increase of 5.6% was largely driven by a 5% increase in transaction count. Top-performing categories included party supplies, household products and food. Our results continue to validate that Dollar Tree is part of the solution for millions of customers seeking great value as they strive to balance their household budget."
The company opened 90 stores in the fourth quarter, expanded or relocated six stores and closed five stores. It ended the fiscal year with 5,367 stores in 48 states and five Canadian provinces.
Dollar Tree forecasts per-share earnings of between 69 cents and 74 cents in its current quarter.
For the current year, Dollar Tree expects per-share earnings of between $3.30 and $3.50 a share on net sales of between $9.2 billion and $9.5 billion. The company forecasts same-store sales will rise in the "low to low-mid single digits" and retail square footage will increase by 7.2%.
Dollar Tree also provided an update on its planned takeover of Family Dollar Stores Inc., a deal that the company hopes to close by April 27, pending approval from the Federal Trade Commission.
Dollar Tree reiterated its expectation that the FTC will require it to divest no more than 300 stores, and said it hopes to reach a deal on divestitures in early March.
Dollar Tree earlier this month acknowledged that the FTC was reviewing more than 500 stores involved in the Family Dollar merger.
