CHESAPEAKE, Va.–First-quarter net income for Dollar Tree totaled $101 million, up an impressive 59 percent over last year’s first quarter.
A 14 percent boost in net sales, which were $1.5 billion and which included a 7.1 percent increase in same-store sales, helped firm the bottom line for the dollar-store retailer. Bob Sasser, president and CEO, said, “Our business momentum was strong throughout the first quarter.” Sasser added that the chain enjoyed increases in both traffic and ticket throughout the quarter, which ended on April 30.
Dollar Tree also benefited from a favorable expense picture. Selling, general and administrative expenses were up 9 percent but fell 120 basis points as a percentage of sales, to 24.5 percent. Gross margin picked up 170 basis points to finish the quarter at 35 percent.
The company now expects net sales for the full fiscal year to range between $6.5 billion and $6.6 billion, which would represent an increase of from 11 percent to 13 percent over the last fiscal year.