Dollar Tree’s Q3 profit soars 58%, raises full-year view

Chesapeake, Va. Dollar Tree again raised its fiscal-year forecast as its third-quarter earnings rose a much stronger-than-expected 58% on increased customer traffic and sales. Reflecting the strength of the dollar-store category in the downturn, the chain reported Tuesday a third-quarter profit of $68.2 million, up from $43.1 million in the year-earlier period.

Sales surged 12.1% to $1.25 billion from $1.11 billion, and same-store sales rose 6.5% in the latest quarter.

"Our traffic is up. Long-time customers are shopping more frequently, and new customers are finding us all the time," chief executive Bob Sasser said on a call with analysts on Tuesday.

During the third quarter, Dollar Tree opened 94 stores, closed eight stores, and expanded or relocated 33 stores. For the year to-date, the company has opened 233 new stores, closed 21 stores and expanded or relocated 74 stores. Retail selling square footage at the end of the third quarter was 32.3 million sq. ft., a 7.2% increase compared with a year ago.