Dollar Tree posts 4Q earnings increase

CHESAPEAKE, Va. Dollar Tree Stores today reported earnings per share of $1.04, for the fiscal fourth quarter ended Feb. 2. Last year, the company reported earnings of 96 cents per share for the fiscal fourth quarter ended Feb. 3, 2007. Last year’s fourth quarter included 14 weeks, commensurate with the 53-week retail calendar. The extra week contributed approximately 7 cents earnings per share to the fourth quarter last year.

Sales for the quarter were $1.3 billion, a 5% increase compared to the $1.24 billion in the comparable fourth quarter last year. Total sales for the fourth quarter last year were $1.32 billion.

“Our business fundamentals are sound,” said president and ceo Bob Sasser. “The outstanding value that we offer continues to make Dollar Tree extremely relevant to the customer in the face of the current economic environment and we have continued to manage costs, increase margins and grow sales and earnings per share.” 

For the year, sales totaled $4.24 billion, a 6.9% increase over fiscal 2006, on a comparable-store sales increase of 2.7%. Diluted earnings per share were $2.09.

The company estimates sales for the first quarter of 2008 to be in the range of $1.01 billion to $1.04 billion. Based on this sales forecast, diluted earnings per share are estimated to be in the range of 37 cents to 40 cents.

For the full year, the company estimates sales will range from $4.49 billion to $4.62 billion. Fiscal year 2008 diluted earnings per share are forecast to be in the range of $2.17 to $2.35.