CHESAPEAKE. Va. — Dollar Tree reported solid gains in comparable-store sales in its fiscal second quarter on an uptick in shopper traffic.
Per-share earnings came in at the high end of the discount retailer’s outlook.
Dollar Tree said total sales increased 7% in the quarter to August 1.
Total revenue climbed 7% to $4.9 billion, topping Wall Street’s expectations of $4.86 billion.
Comparable-store sales increased 3.7%, reflecting a 0.4% increase in traffic and a 3.3% increase in average ticket.
Dollar Tree posted a profit of $514.5 million and adjusted per-share earnings of $2.70, up from 77 cents a share a year earlier and well above Wall Street’s forecast of $1.15 per share.
The gains show that Dollar Tree’s transition to higher-priced items is bearing fruit, as merchandise priced above $1 allows for a wider merchandise mix and draws a broader base of shoppers.
“Our strategies are unlocking a better assortment in better-run stores, while allowing us to engage customers in more relevant and compelling ways," said CEO Mike Creedon. "What continues to set Dollar Tree apart is our ability to deliver value, convenience, and the excitement of discovery all in one shopping trip.”
Quarterly earnings included a benefit of $1.31 a share from tariff refunds. The company said tariff refunds overall totaled $383 million in the quarter.
Dollar Tree raised its fiscal-year outlook and expects net sales in the range of $20.5 billion and $20.7 billion and for comparable-store sales to growth between 3$ and 4$. Management forecasts adjusted earnings of $7.70 to $8.05 per share, with a 60-cent benefit from tariff refunds. The company previously forecast fiscal-year earnings of $6.70 to $7.10 a share.
Dollar Tree ended the quarter with 9,436 stores across the Dollar Tree U.S. and Dollar Tree Canada banners.
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