Dollar Tree Gains Sales Momentum In Q3

Dollar Tree’s discount variety store mix picked up the pace in the third quarter, accelerating comparable store sales and net sales growth.

Consolidated net sales increased 6.3% to $5.32 billion in the third quarter from $5 billion in the prior year’s third quarter. Enterprise same-store sales increased 3.2% on a constant currency basis. Same-store sales for the Dollar Tree banner increased 5% on a constant currency basis while same-store sales for the Family Dollar banner increased 1.5%.

Net income compared to the prior year’s third quarter increased $68.3 million to $239.9 million and diluted earnings per share increased 40.3% to $1.01 compared to $171.6 million and $0.72 in the prior year’s third quarter.

In terms of its outlook, the company estimated that consolidated net sales for the fourth quarter of 2017 will range from $6.32 billion to $6.43 billion, based on a low single-digit increase in same-store sales for the combined enterprise. Diluted earnings per share are estimated to be in the range of $1.80 to $1.89.

“Our team delivered terrific results in the third quarter,” said Gary Philbin, president and CEO, Dollar Tree. “Same-store sales accelerated in both the Dollar Tree and Family Dollar banners, we delivered a 120 basis point improvement in enterprise operating margin and earnings per share grew more than 40% from the prior year. Our third quarter results demonstrate our continuing progress in delivering value and convenience, serving more customers in more markets across North America, through our diversified business model.”