Dollar Tree 3Q EPS up 19%

CHESAPEAKE, Va. Dollar Tree Stores today reported net earnings per diluted share of 38 cents, for the fiscal third quarter ended Nov. 3, an increase of nearly 19% over the prior year. As previously reported, sales for the quarter were $997.8 million, a 9.6% increase from $910.4 million, for the same period, last year. Comparable-store sales increased 1.9% for the quarter.

“I am pleased with Dollar Tree’s growth in sales and earnings, and especially the improvement in gross margin during the quarter,” said president and ceo Bob Sasser. “Our seasonal business was strong as our stores continue to create merchandise excitement, and both traffic and average ticket increased.” 

The company reported that for the third quarter, gross margin was 34.5%, compared to 33.8% in last year’s third quarter. The improvement in rate was principally the result of higher merchandise margins and improved shrink performance relative to the same period one year ago.

The company estimates sales for the fourth quarter of 2007 to be in the range of $1.31 billion to $1.35 billion. Based upon this sales forecast, diluted earnings per share are estimated to be in the range of 99 cents to $1.06.

Full year sales are now forecasted to be in the range of $4.25 billion to $4.29 billion. Full year diluted earnings per share are expected to be in the range of $2.06 to $2.13.