Dollar Tree delivered a positive second quarter, with a rise in net sales, comps and net income.
Consolidated net sales increased 5.7% to $5.28 billion in the second quarter ended July 29 from $5 billion in the prior year’s second quarter. Enterprise same-store sales increased 2.4%. The same-store sales growth was driven by increases in comparable transaction count and average ticket. Same-store sales for the Dollar Tree banner increased 3.9%, while same-store sales for the Family Dollar banner increased 1%.
Net income compared to the prior year’s second quarter increased $63.6 million to $233.8 million and diluted earnings per share increased 36.1% to $0.98 compared to $0.72 in the prior year’s quarter.
During the quarter, the company recorded $2.6 million, or $0.01 per diluted share, of impairment charges related to its receivable from Dollar Express, which acquired the stores that the FTC required the company to divest.
“I am extremely pleased with the quarter,” said Bob Sasser, CEO, Dollar Tree. “Both Dollar Tree and Family Dollar produced positive same-store sales, our enterprise operating margin improved 80 basis points and earnings per share exceeded the high end of our guidance range. Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience. As always, our focus is on the customer and how we can best meet their evolving needs. We have a proven business model, an experienced leadership team, momentum in our business and a transformational opportunity. We are confident that we are well-positioned for the back half of 2017.”