Dollar Tree beats Street with Q1 profit

Chesapeake, Va. – Dollar Tree Inc. slightly exceeded Wall Street estimates with net income of $138.3 million in the first quarter of fiscal 2014, up 4% from $133.5 million in the first quarter of fiscal 2013. Net sales rose 7% to $2 billion from $1.87 billion, and same-store sales increased 2%.



"Our first quarter sales grew as the result of increases in both traffic and average ticket with our discretionary business growing slightly faster than consumables,” said CEO Bob Sasser. “Leading categories during the quarter included candy, check-out products, stationery and seasonal merchandise for Valentines and Easter.”



Dollar Tree estimates sales for second quarter 2014 to be in the range of $1.97 billion to $2.02 billion, based on low-single digit positive same-store sales. Full-year sales are now estimated to be in the range of $8.37 billion to $8.54 billion, based on a range of low-single digit positive same-store sales.