Dollar Tree reports 2Q comps growth

CHESAPEAKE, Va. Dollar Tree reported that consolidated net sales for the second quarter were $1.38 billion, a 12.7% increase compared with $1.22 billion reported for the quarter ended Aug. 1, 2009. Comparable-store sales increased 6.7%, on top of a 6.8% increase for the second quarter 2009.

Earnings per diluted share for the second quarter were 61 cents, an increase of 45% compared with the 42 cents earnings per diluted share reported for the quarter ended Aug. 1, 2009.

“Dollar Tree’s sales and earnings continued to expand in the second quarter,” president and CEO Bob Sasser said. “Sales were strong throughout the quarter, driven by increases in both traffic and average ticket. Customers are responding in record numbers to our outstanding values and fun shopping experience. Leading categories in the second quarter included food, health and beauty care products and party supplies. In addition, our seasonal sell-through was on plan and our inventory is clean heading into the fall season.”

The company estimates sales for the third quarter of 2010 to be in the range of $1.35 billion to $1.39 billion, based on low to mid single digit positive comparable-store sales. Diluted earnings per share are estimated to be in the range of 57 cents to 62 cents.

Full year sales are now estimated to be in the range of $5.77 billion to $5.86 billion. Diluted earnings per share are expected to be $2.84 to $2.96, including the impact of the non-cash, non-recurring charge in the first quarter relating to the company’s previously announced retail inventory accounting change.