Comparable store sales momentum across both its banners propelled Dollar Tree third quarter results to a beat on Wall Street estimates.
Net income in the third quarter was $330 million, or $1.39 per diluted share, versus $255.8 million, or $1.08 per diluted share, in the prior-year period. Dollar Tree topped a MarketBeat published analyst consensus diluted earnings per share estimate of $1.15.
Company comparable sales in the quarter gained 5.1% with Family Dollar up 6.4% and Dollar Tree up 4% year over year.
Consolidated net sales advanced 7.5% to $6.18 billion in the quarter versus the year-earlier period. Operating income increased 29.9% to $465.5 million compared to the period a year before.
“I am incredibly proud of our team’s efforts to continue serving customers effectively, while driving operational improvements in both banners through this dynamic retail environment,” said Mike Witynski, Dollar Tree president and CEO. “Dollar Tree delivered its strongest same-store sales performance in the past ten quarters, along with a 50 basis point improvement in operating margin. At Family Dollar, the improvement continues as the team delivered a 6.4% comparable store sales increase, a 230 basis point improvement in gross profit margin and a 250 basis point improvement in operating margin.”