US retailer Dollar Tree has reported a consolidated sales increase of 5.7% to $5.28 billion in the second quarter of the year.
Same-store sales increased by 2.4%, and net income grew by $63.6 million to $233.8 million, while diluted earnings per share increased 36.1% to $0.98.
"I am extremely pleased with the quarter," said Bob Sasser, CEO of Dollar Tree. "Both Dollar Tree and Family Dollar produced positive same-store sales, our enterprise operating margin improved 80 basis points and earnings per share exceeded the high end of our guidance range. Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience."
First Half Results
The latest quarterly results brings Dollar Tree's consolidated sales for the first half of the year to $10.57 billion, representing an increase of 4.8% year-on-year.
Same-store sales for the Dollar Tree banner increased 2.9%, however, same-store sales at Family Dollar decreased by 0.2%.
Gross profit increased 6.1% to $3.25 billion, net income grew 7.8% to $434.3 million, and adjusted diluted earnings per share increased 15.9% to $1.97.
Company Outlook
The company estimates that consolidated net sales for the third quarter of 2017 will range from $5.2 billion to $5.29 billion, based on a low single-digit increase in same-store sales.
Meanwhile, consolidated net sales for the full fiscal year 2017 are expected to range from $22.07 billion to $22.28 billion, up from the previously expected range of $21.95-$22.25 billion.
"We have a proven business model, an experienced leadership team, momentum in our business and a transformational opportunity," added Sasser.
"We are confident that we are well-positioned for the back half of 2017 and look to deliver value to our long-term shareholders in the years ahead."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
