CHESAPEAKE, Va. — The discount store channel continues to thrive, as evidenced by Dollar Tree's strong second-quarter performance.
The company reported that sales for its second quarter ended July 30 increased 11.9% to $1.54 billion from $1.38 billion for the same period last year. Comparable-store sales increased 4.7%, on top of a 6.7% increase for the second quarter 2010.
Dollar Tree's earnings rose an impressive 26.2% to 77 cents per diluted share from 61 cents per diluted share for the prior-year quarter.
“I am pleased with our second quarter performance as sales, earnings and operating margins continue to expand,” president and CEO Bob Sasser said. “Increases in customer traffic and average ticket drove our sales growth, which was strongest in the latter half of the quarter. Our operating margin continued to improve even with significantly higher energy prices throughout the quarter relative to last year. Earnings continue to grow and our stores are executing at a high level. We transitioned quickly from “summer fun” to back-to-school and are ready for the fall selling season.”
During the second quarter, Dollar Tree opened 76 stores, expanded or relocated 23 stores, and closed 11 stores.
Dollar Tree said it expects sales for the third quarter of 2011 to be in the range of $1.56 billion to $1.60 billion, based on low single-digit positive comparable-store sales. Diluted earnings per share are estimated to be in the range of 77 cents to 83 cents.