Dollar Tree Earnings: Revenue Grows Again by Double-Digits

Dollar Tree, Inc. (NASDAQ:DLTR) reported net income above Wall Street’s expectations for the first quarter. Dollar Tree, Inc. operates discount variety stores in the United States. Its stores offer merchandise at the fixed price of $1.00. The company operates stores under the names of Dollar Tree, Deal$, and Dollar Bills.

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Dollar Tree Earnings Cheat Sheet for the First Quarter

Results: Net income for Dollar Tree, Inc. rose to $101 million (82 cents/share) vs. $63.6 million (49 cents/share) in the same quarter a year earlier. A rise of 58.8% from the year earlier quarter.

Revenue: Rose 14.3% to $1.55 billion YoY.

Actual vs. Wall St. Expectations: DLTR beat the mean analyst estimate of 75 cents/share. Estimates ranged from 70 cents per share to 76 cents per share.

Quoting Management: “I am pleased by Dollar Tree’s continuing growth in sales and earnings,” President and CEO Bob Sasser said. “Our business momentum was strong throughout the first quarter. Seasonal performance was outstanding from Valentine’s through Easter. Both traffic and ticket increased as more customers continue to rely on Dollar Tree for great merchandise values and a fun, convenient shopping experience.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.9%, with the biggest boost coming in the most recent quarter when revenue rose 14.3% from the year earlier quarter.

The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 20.4% and in the third quarter of the last fiscal year, the figure rose 36.7%.

Gross margins grew 1.7 percentage points to 35%. The growth seemed to be driven by increased revenue, as the figure rose 14.3% from the year earlier quarter while costs rose 11.4%.

Competitors to Watch: Dollar General Corp. (NYSE:DG), Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Wal-Mart Stores, Inc. (NYSE:WMT), Gordmans Stores, Inc. (NASDAQ:GMAN), Big Lots, Inc. (NYSE:BIG), Ross Stores (NASDAQ:ROST), and Wal-mart de Mexico S A B de C V (WMMVY).

Stock Performance: Shares of DLTR are up 2.9% from the previous close of $61.33.

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