Dollar Tree’s Q1 profit up 5.3%

Chesapeake, Va. Dollar Tree said Thursday its fourth-quarter net income rose 5.3% to $63.6 million, despite inventory-related charges, as same-store sales increased and new stores added to revenue.

Sales rose 12.6% to $1.35 billion, from $1.2 billion. Same-store sales increased 6.5%, on top of a 9.2% increase for first quarter 2009.

“I am pleased with the continued momentum in our business,” president and CEO Bob Sasser said. “Both traffic and average ticket increased during the quarter driving sustained growth in sales and earnings. Leading categories in the first quarter included health and beauty care products, food, household consumables, and party goods.”

During the first quarter, Dollar Tree opened 74 stores, closed six stores, and expanded or relocated 34 stores. Retail selling square footage increased 6.5%, compared with a year ago, to 33.0 million sq. ft. The company has said it plans to open 220 namesake stores and 20 Deal$ stores this year. As of the end of the period, the company operated 3,874 stores.