CHESAPEAKE, Va. — A rise in shopper traffic and the average basket size helped fuel a double-digit gain in revenue for the first quarter at Dollar Tree Inc.
A rise in shopper traffic and the average basket size helped fuel a double-digit gain in revenue for the first quarter at Dollar Tree Inc.
The discount variety store retailer said Thursday that consolidated net sales for the quarter ended May 1 rose 12.6% to $1.35 billion from $1.20 billion a year earlier. Same-store sales increased 6.5%.
First-quarter earnings totaled $63.6 million, or 73 cents per per diluted share, including a nonrecurring, noncash charge of $26.3 million, or 19 cents per diluted share, relating to the company’s previously announced retail inventory change. The result compared with earnings of $60.4 million, or 66 cents per diluted share, in the prior-year period.
Excluding the charge, diluted earnings per share were 92 cents, an increase of 39.4% from a year ago.
"I am pleased with the continued momentum in our business," Dollar Tree president and chief executive Bob Sasser said in a statement. "Both traffic and average ticket increased during the quarter, driving sustained growth in sales and earnings. Leading categories in the first quarter included health and beauty care products, food, household consumables and party goods."
Dollar Tree forecasts sales for the second quarter of 2010 to be in the range of $1.32 billion to $1.36 billion, based on low- to mid-single-digit positive comparable-store sales. Diluted earnings per share are estimated to be in the range of 77 cents to 85 cents.
During the first quarter, Dollar Tree opened 74 stores, closed six stores, and expanded or relocated 34 stores. Retail selling square footage increased 6.5% compared to a year ago, to 33 million square feet.
As of May 1, the retailer operated a total of 3,874 stores in 48 states.