Dollar Tree, Inc. (NASDAQ: DLTR) reported second-quarter financial results Thursday morning.
The company, based out of Chesapeake, Virginia, reported consolidated net sales increased 4.6% to $5.53 billion from $5.28 billion in the prior year’s second quarter. Enterprise same-store sales increased 1.8% on a constant currency basis (or 1.9% when adjusted to include the impact of Canadian currency fluctuations).
Same-store sales for the Dollar Tree banner increased 3.7% on a constant currency basis (or 3.8% when adjusted to include the impact of Canadian currency fluctuations). Same-store sales for the Family Dollar banner were flat at 0.0%.
Gross profit increased 2.2% to $1.66 billion in the quarter compared to $1.63 billion in the prior year’s second quarter. As a percent of sales, gross margin decreased to 30.1% compared to 30.8% in the prior year.
The 70-basis-point decline was driven primarily by higher domestic freight, shrink and distribution costs, partially offset by lower merchandise costs.
Net income compared to the prior year's second quarter increased $40.1 million to $273.9 million and diluted earnings per share increased 17.3% to $1.15 compared to $0.98 in the prior year’s quarter.
Said CEO Gerry Philbin "I am proud of our team’s accomplishments in the second quarter. In addition to posting earnings near the top end of our guidance range, our Dollar Tree banner delivered increases in both traffic and ticket, and our Family Dollar banner’s same-store sales were flat compared to last year’s 1% increase. Importantly, Family Dollar’s consumables business was positive for the seventh consecutive quarter."
During the quarter, the Company opened 146 stores, expanded or relocated 13 stores, and closed 26 stores
Shares went downhill $7.03, or 7.4%, to $87.43.
