Dollar Tree reports strong Q3, raises guidance
CHESAPEAKE, Va. Dollar Tree reported that total net sales for the third quarter were $1.43 billion, a 14.2% increase compared with $1.25 billion reported for the quarter ended Oct. 31, 2009. Comparable-store sales increased 8.7%, on top of a 6.5% increase for the third quarter 2009.
Earnings per diluted share for the third quarter were 73 cents, an increase of 43% compared with the 51 cents earnings per diluted share reported for the quarter ended Oct. 31, 2009.
“I am pleased with the company’s performance, as both sales and earnings continued to expand,” president and CEO Bob Sasser said. “Increases in customer traffic and average ticket drove strong sales growth throughout the quarter. Leading categories in the third quarter included food, housewares, domestics and home products, party supplies, and health and beauty care products. Seasonal performance was strong. We executed a quick transition from Halloween and our stores are now set with fresh, high-value merchandise for Thanksgiving and the Holiday season.”
Dollar Tree said sales for the fourth quarter of 2010 are now estimated to be in the range of $1.72 billion to $1.76 billion, based on low to mid single digit positive comparable-store sales. Diluted earnings per share are estimated to be in the range of $1.20 to $1.27.
Full year sales are now estimated to be in the range of $5.88 billion to $5.92 billion. Diluted earnings per share are expected to be $3.01 to $3.08.