UPDATE: Dollar Tree Posts Rise In Q1 Profit

Dollar Tree

reported a 3.6% gain in its fiscal first-quarter profit. Dollar Tree's quarterly profit rose to $138.3 million, or $0.67 per share, versus a year-ago profit of $133.5 million, or $0.59 per share. Its sales climbed 7.2% to $2 billion. Dollar Tree had expected earnings of $0.63 to $0.68 per share on sales of $1.98 billion to $2.04 billion. However, analysts were expecting earnings of $0.66 per share on revenue of $2.01 billion. Dollar Tree's same-store sales increased 2% in the period. Dollar Tree now expects full-year earnings of $2.94 to $3.12 per share. The company now projects revenue of $8.37 billion to $8.54 billion, versus its earlier forecast of $8.35 billion to $8.58 billion. For the current period, it projects earnings of $0.58 to $0.64 per share on revenue of $1.97 billion to $2.02 billion. However, analysts expected earnings of $0.64 per share on revenue of $2.01 billion. Its gross margin shrank to 34.8% versus 35.2%, while input costs increased 7.8% to $1.3 billion. Dollar Tree CEO Bob Sasser said, "Our first quarter sales grew as the result of increases in both traffic and average ticket with our discretionary business growing slightly faster than consumables.” The executive continued, “Leading categories during the quarter included candy, check-out products, stationery and seasonal merchandise for Valentines and Easter.” Dollar Tree opened 94 stores and closed 6 stores in the first quarter. Dollar Tree shares surged 6% to $53.00 in pre-market trading.