Dollar Tree Net Jumps 37 Percent in Third Quarter
CHESAPEAKE, Va.-Net income for Dollar Tree finished the third quarter at $93.2 million, up 37 percent over the third quarter of last year.
Net sales for the quarter, which ended on Oct. 30, rose 14.2 percent to $1.4 billion, driven by increases in store traffic and average ticket per sale, according to Bob Sasser, president and chief executive officer. Sasser cited housewares, domestics and home products as among the top-selling third-quarter categories for the dollar-store retailer. The gain included an increase of same-store sales of 8.7 percent.
Gross margin gained 20 basis points to finish the quarter at 35.5 percent. Selling, general and administrative expenses increased 9.4 percent in dollar terms, but declined 110 basis points as a percentage of sales to 25.6 percent.
Dollar Tree estimated that fourth-quarter net sales will be in the range of $1.72 billion to $1.76 billion. This would bring net sales for the full fiscal year to between $5.88 billion and $5.92 billion.