US discount retailer Dollar Tree has reported a consolidated sales increase of 6.3% to $5.32 billion in the third quarter of its financial year.
Same-store sales increased by 6.3%, and net income grew by $68.3 million to $239.9 million, while diluted earnings per share increased 40.3% to $1.01, compared to $0.72 in the prior year's quarter.
"Our team delivered terrific results in the third quarter," stated Gary Philbin, President and Chief Executive Officer. "Same-store sales accelerated in both the Dollar Tree and Family Dollar banners; we delivered a 120 basis point improvement in enterprise operating margin; and earnings per share grew more than 40% from the prior year.
"Our third quarter results demonstrate our continuing progress in delivering value and convenience, serving more customers in more markets across North America, through our diversified business model."
First Nine Months Results
The latest quarterly results brings Dollar Tree's consolidated sales for the first nine months to $15.88 billion, representing an increase of 5.3% from $15.08 billion in the year before.
Same-store sales for the Dollar Tree banner increased 3.5%, while same-store sales for the Family Dollar banner increased slightly by 0.3%.
Enterprise same-store sales increased 1.8% on a constant currency basis and also when adjusted to include the impact of Canadian currency fluctuations.
Gross profit increased 7.3% to $4.92 billion, net income grew 17.4% to $674.2 million, and adjusted diluted earnings per share increased 16.9% to $2.84.
Company Outlook
The company estimates consolidated net sales for the fourth quarter of 2017 to range from $6.32 billion to $6.43 billion, based on a low-digit increase in same-store sales for the combined enterprise. It estimates diluted earnings per share to be in the range of $1.80 to $1.89.
Consolidated net sales for full-year fiscal 2017 are now expected to range from $22.20 billion to $22.31 billion compared to the Dollar Tree’s previously expected range of $22.07 billion to $22.28 billion.
“We are confident in our ability to continue driving positive same-store sales, through meeting our customers' needs and wants; improving enterprise operating margin; and delivering year-over-year earnings per share growth,” said Philbin.
“We believe we are well-positioned in the most attractive sector in retail and will remain intensely focused on delivering great value and convenience to our growing customer base."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
