November 20, 2014
As Dollar Tree moves forward with its acquisition of Family Dollar, the company reported an increase in same-store sales and expressed a favorable holiday outlook.
Dollar Tree’s earnings per share increased 19% to $0.69 and its revenue increased 11.2% to $2.1 billion compared to the third quarter of fiscal 2013; these results were driven by comparable store sales increasing 5.9% during the quarter compared to an increase of 3.1% in the prior-year period.
“These results validate our value enhancement initiatives targeted to attract new, and retain current, customers. Our store teams are well-prepared and our shelves are well-stocked with incredible values for the upcoming holiday season,” said Bob Sasser, Dollar Tree CEO.
Dollar Tree opened 117 net new stores during the quarter, bringing its total store count to 5,282. The company has opened 291 net new stores year-to-date, putting it on pace to reach its goal of opening 375 net new stores in fiscal 2014.
Dollar Tree has agreed to buy Family Dollar Inc. but the deal is facing a challenge from Dollar General Corporation over antitrust concerns.
Dollar Tree, which like other discounters is facing competition from small-format stores opened by big retailers such as Walmart, will become the largest dollar store chain if it pulls off its deal with Family Dollar.
In its outlook statement, Dollar Tree estimated fourth-quarter sales in the range of $2.39 billion to $2.46 billion and EPS in the range of $1.07 to $1.14. Consensus estimates call for EPS of $1.13 on revenues of $2.45 billion.
Source: Retailing Today
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