CHESAPEAKE, Va.–Fourth-quarter net income for Dollar Tree finished at $162.5 million, 20 percent ahead of the bottom line for last year’s fourth quarter.
The results wrapped up a fiscal year in which the discount retailer set records for both sales and earnings for both the quarter and the year as a whole. Net sales for the quarter totaled $1.7 billion, up 11 percent from last year. In addition, Dollar Tree enjoyed a gross-margin increase of 50 basis points to 37.6 percent. While selling, general and administrative expenses in dollar terms rose 8.1 percent, they shed 50 basis points as a percentage of sales to 22.6 percent.
Dollar Tree’s gains for the full year were even more impressive. Net income rose 24 percent to $397.3 million, and net sales were up 12 percent to $5.9 billion.
Bob Sasser, president and chief executive officer, said Dollar Tree’s fourth-quarter sales were particularly strong in its stores in the Southeast and Southwest. Sasser also noted that the retailer’s inventory turns rose for the sixth straight year in 2010.