Dollar Tree reported a mixed quarter with sales that topped Street estimates and earnings that fell short amid elevated shrink and a shift in consumer buying to consumables.
The extreme-discounter also reported that it opened 107 new stores, relocated 33 stores, and closed 29 stores during the quarter. It also expanded its multi-price Plus offering to an additional 408 Dollar Tree stores, and completed 252 Family Dollar store renovation projects. (Dollar Tree calls for new store growth of 600 to 650 stores, with 43% of the growth)
Net income totaled $299 million, or $1.35 a share, compared with $536.4 million, or $2.37 a share, for the quarter ended April 29. On an adjusted basis, earnings came in at $1.47 per share, falling below analysts’ expectations of $1.52 a share.Chain Store Age