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Dollar Tree profit dips in second quarter

New York -- Dollar Tree Inc. reported that net income in the second quarter dipped 2.6% to $121.5 million, from $124.7 million a year earlier, amid higher freight costs and investments in higher-value products.

Revenue rose 9.5% to $2.03 billion, and same-store sales increased 4.5%, beating Wall Street estimates of a 2.5% rise. It was the chain’s26th consecutive quarter of positive comparable store sales growth.

“I am very pleased with our second quarter results,” CEO Bob Sasser said. “Expanded assortments of high-value product contributed to our strongest quarterly comparable store sales performance in two years. Pet supplies, hardware, household products, food, electronics and party goods all performed well in the quarter. Our 4.5% comp sales resulted from increases in both customer traffic and average ticket.”

The company opened 90 stores, expanded or relocated 20 stores and closed four stores during the quarter.

Early this week, Dollar General bid $78.50 for Family Dollar Monday morning in a $9.7 billion deal that exceeds the $74.50 a share Dollar Tree offered for Family Dollar back on July 28. But on Thursday, Family Dollar’s board of directors has unanimously rejected the non-binding proposal made by Dollar General on the basis of antitrust regulatory considerations.