Dollar Tree Posts Stellar Earnings, Climbs 17.9%

Dollar Tree (DLTR) saw its share price grow by 17.87 percent to close at $113 apiece after reporting a stellar earnings performance in the first quarter of the year.

In an earnings call on the same day, Dollar Tree Inc. said that it was able to grow its total revenues during the period by 7 percent to $4.976 billion from $4.640 billion in the same period last year. Same-store net sales also increased by 3.5 percent, driven by a 4.5 percent increase in average ticket, partially offset by a 1 percent decline in traffic.

Net income, on the other hand, inched up by 1.1 percent to $347.3 million from $343.4 million year-on-year.

“Our first quarter results reflect continued progress across the business and demonstrate the strength of Dollar Tree’s position as the preferred destination for value, convenience, and discovery,” Dollar Tree Inc. CEO Mike Creedon said.

“We continued advancing our strategic plan—a more relevant assortment, agile cost management, a stronger customer connection, and new store growth coupled with improved store conditions—all driving operating margin expansion and delivering a strong bottom-line performance,” he added.

For the second quarter, Dollar Tree Inc. is looking to hit net sales of $4.8 billion to $4.9 billion, versus $4.6 billion in the same period last year. Comparable net sales are expected to grow by 2.5 to 3.5 percent.

In the full-year period, net sales are expected to be $20.5 billion to $20.7 billion, based on comparable net sales growth of 3 to 4 percent.

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