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Dollar Tree reports 5.7% increase in Q2 net sales

IBR Staff Writer Published 29 August 2017

Dollar Tree has reported a 5.7% increase in its net sales to $5.28bn for the second quarter of this year, compared to $5.00bn for the same period last year.

Enterprise same-store sales registered a 2.4% growth and same-store sales for the Dollar Tree banner increased 3.9%.

The company said same-store sales for the Family Dollar banner rose 1%.

The company’s gross profit raised by 7.6% to $1.63bn, compared to $1.51bn in the last year second quarter.

As a percent of sales, gross margin increased to 30.8% when compared to 30.3% in the previous year.

Selling, general and administrative expenses were 22.9% of sales,when compared to 23.1% of sales in the last year’s Q2.

Moderate compensation was made by higher operating and corporate expenses resulting from increased advertising costs and legal fees.

Operating income increased 17.4% to $419.5m in Q2. Net income compared to the previous year's quarter increased $63.6m to $233.8m.

The company’s consolidated net sales for the third quarter of the current year are estimated to range from $5.20 bn to $5.29 bn, depending upon a low single-digit increase in same-store sales for the combined enterprise.

Dollar Tree has unveiled 133 stores, relocated 31 stores and shut down 34 stores in the second quarter and its retailing selling square footage was nearly 114.5 m ft2 by the end of this quarter.

Dollar Tree CEO Bob Sasser said: “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.”

Image: Dollar Tree Q2 results reports 5.7% increase in net sales. Photo: Courtesy of Niceckhart.