For the quarter, Dollar Tree posted a net income of $94.9 million, or 77 cents a share, compared with $78 million, or 61 cents a share, a year earlier.
Net sales rose 12% to $1.54 billion with comparable store sales rising 4.7% on top of 6.7% increase in the same quarter last year.
While its profit exceed analysts’ average estimate for earnings of 75 cents a share, Dollar Tree missed analysts’ estimates for sales of $1.55 billion.
For its third quarter, Dollar Tree forecast earnings of 77 cents to 83 cents a share on sales expected to be between $1.56 billion and $1.06 billion. Analysts’ average estimate expects 82 cents.
‘More Stores, New Formats, New Markets’
“The low-single-digit comp guidance for quarter three is a combination of a difficult comparison to last year’s 8.7%, the economy, and a small negative shift for Halloween on the calendar,” said Wedbush Securities analyst Joan L. Storms.
“We’re expanding our business by opening more stores, better stores, and developing new formats, new markets and new channels,” said Bob Sasser, ceo. “During the second quarter this year, we opened 76 new stores and relocated and expanded another 23 stores. Through the first half we added 159 new stores and expanded or relocated another 64 stores.”
Selling square footage increased 8.9% relative to the same time last year, and the company ended the first half with 4,242 stores. By the end of the year, the company plans 275 new stores and 90 relocations expansions.
In addition, Dollar Tree are expanding outside the United States, including the Deal$ concept and growth in Canada.