First quarter sales at Dollar Tree were up mid single-digits as comparable store sales growth at the company’s Dollar Tree banner was key to driving sales.
For the period ending April 29, company-wide sales increased 4% to $5.29 billion. Net income decreased $32.2 million to $200.5 million with diluted earnings per share of $0.85. Company-wide comparable store sales were up 0.5%, with comp sales for the quarter at Dollar Tree up 2.5% and down 1.2% at Family Dollar.
“I am extremely pleased with the first quarter performance of our Dollar Tree banner and with the continued progress in rebuilding the Family Dollar business,” said Bob Sasser, CEO, Dollar Tree. “Same-store sales were positive and total sales were near the midpoint of our range of guidance.”
During an investor conference call, Sasser said Family Dollar shoppers are seeing cleaner stores, improved product assortments and more consistent in-stocks.
“I’m confident that each of these elements, over time, contributes to winning back repeat visits and share of wallet,” he said. “We are in the early stages with many of our key initiatives that are expected to bring continued improvement.”
Looking ahead, the company estimates consolidated net sales for the second quarter to range from $5.18 billion to $5.28 billion, with same-store sales expected to be slightly positives to a low single-digit increase.