Shoppers stock up on bargains at Dollar Tree

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Shoppers stock up on bargains at Dollar Tree

By Gina Acosta - 08/24/2017

U.S. shoppers can't get enough of Dollar Tree's bargains, as the retailer lifted its guidance on better than expected same store sales.

For the second quarter ended July 29, same-store sales at Dollar Tree rose 2.4% as shoppers loaded up on value-priced household goods and groceries. Comps also rose at the Family Dollar business by 1%. 

By keeping prices low and improving customer service and product offerings while further improving pricing power and economies of scale through store count growth, Dollar Tree seems to be sustaining its edge against pricing and location competition from other discounters.

"I am extremely pleased with the quarter," stated Bob Sasser, Chief Executive Officer. "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. Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience."

Dollar Tree reported earnings of $233.8 million for the second quarter ended July 29. The Chesapeake, Va.-based company said it had net income of 98 cents per share. Earnings, adjusted for asset impairment costs, were 99 cents per share.

For the current quarter ending in November, Dollar Tree said it expects revenue in the range of $5.2 billion to $5.29 billion.

The company expects full-year earnings to be $4.44 to $4.60 per share, with revenue ranging from $22.07 billion to $22.28 billion.

"I am incredibly proud of our people. Our merchants, store operators, supply chain and support teams have truly embraced this opportunity to improve and grow our combined business. As always, our focus is on the customer and how we can best meet their evolving needs. We have a proven business model, an experienced leadership team, momentum in our business and a transformational opportunity. We are confident that we are well-positioned for the back half of 2017 and look to deliver value to our long-term shareholders in the years ahead," Sasser added.

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