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Dollar Tree sees 2Q sales, earnings rise by double digits
August 18th, 2011
CHESAPEAKE, Va. – Dollar Tree Inc. reported a 22% increase in net income to $94.9 million as sales climbed 11.9% to $1.54 billion during the second quarter of fiscal 2011.
The deep discount chain said comparable-store sales grew 4.7% on top of a 6.7% increase in the second quarter of fiscal 2010.
“I am pleased with our second-quarter performance as sales, earnings and operating margins continue to expand,” said president and chief executive officer Bob Sasser said in a statement. “Increases in customer traffic and average ticket drove our sales growth, which was strongest in the latter half of the quarter.”
Operating margin widened by 70 basis points to 10% of sales, driven by a 10 basis-points increase in gross margin and a 60 basis-points drop in the selling, general and administrative expenses ratio.
Based on the strong first-half performance, management boosted its full-year sales forecast to a range of $6.53 billion to $6.62 billion. Diluted earnings per share are projected to be between $3.82 per share and $3.95 per share, compared with diluted EPS of $3.10 in fiscal 2010.