Dollar Tree continues growth initiative following Q2 results

Dollar Tree customers are responding to the value retailer’s offerings in discretionary and consumable merchandise categories. As a result, its consolidated net sales for the second quarter ended Aug. 3 were $1.85 billion, up 8.8% from $1.7 billion for the prior-year quarter.

Comparable-store sales increased 3.7%, on top of a 4.5% increase for the second quarter 2012.

Earnings per diluted share for the second quarter were $0.56, up 9.8% from $0.51 earnings per diluted share reported for the prior-year quarter. Operating margin increased 10 basis points for the quarter to 10.9%.

“I am pleased with our second quarter performance,” said CEO Bob Sasser. “Sales, customer traffic, average ticket, earnings and operating margin all continue to grow. Our stores are well-stocked with a terrific merchandise presentation for back-to-school and the fall selling season.”

During the second quarter, Dollar Tree opened 81 stores, expanded or relocated 32 stores and closed 2 stores. Retail selling square footage increased 7% compared to a year ago, to 41.9 million sq. ft.

Year-to-date through August 3, 2013, the company’s consolidated net sales were $3.72 billion, up 8.5% from the first half of 2012. Comparable-store sales increased 2.8%, on top of a 5.1% comparable store sales increase in the first half last year.

First half 2013 earnings per share were $1.15, up 13.9% from earnings per share of $1.01 in the first half 2012.

Operating margin in the first half 2013 was 11.2%, an increase of 30 basis points from operating margin of 10.9% in the first half 2012.

Dollar Tree operates 4,842 stores in 48 states and five Canadian provinces.