CHESAPEAKE, Va.-The bottom line for dollar-store chain Dollar Tree continued its upward curve in the fourth quarter, with a 16 percent gain in net income to $187.9 million.
The result for the quarter, which ended on Jan. 29, brought the company’s net profit for the fiscal year to $488.3 million, up 23 percent over the prior fiscal year. Net sales for both the quarter and the year rose 13 percent, bringing the fourth-quarter total to $1.9 billion and finishing the year at $6.6 billion. Same-store sales logged in increases of 7.3 percent for the quarter and 6 percent for the year.
Dollar Tree’s fourth-quarter numbers benefited from 20-basis-point improvement in gross margin, to 37.8 percent. While selling, general and administrative expenses rose 11 percent in dollars, they fell 40 basis points as a percentage of sales, to 22.2 percent.
For the current fiscal year, Dollar Tree is forecasting a sales increase of between 9.3 percent and 12 percent. Same-store sales should rise in the low to mid-single digits, the company said.