Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report reported fiscal-second-quarter earnings that beat Wall Street estimates, and the chief executive said the discount retailer is seeing fewer average customer visits at higher average sales.
For the quarter ended Aug. 1 Dollar Tree reported net income of $261.5 million, or $1.10 a share, compared with $180.3 million, or 76 cents, in the year-earlier quarter.
Revenue rose to $6.28 billion from $5.74 billion.
Analysts surveyed by FactSet were expecting earnings of 92 cents a share on revenue of $6.22 billion.
The company also reported 7.2% growth in comparable sales and a 1.8-percentage-point widening in gross-profit margin.
"Consumer shopping patterns are evolving," the Chesapeake, Va., company's chief executive, Mike Witynski, said in a statement.
"Customers are shopping with a purpose, while looking to minimize risk and exposure. As a result, we are seeing material increases in average ticket, while seeing a decline in average visits."
Peer discount retailer Dollar General DG also reported better-than-expected results.
For the second quarter ended July 31 the Goodlettsville, Tenn., retailer reported net income of $3.12 a share, up 89% from $1.65 in the year-earlier period.
The latest adjusted earnings were $3.12 a share, up 70% and ahead of the Wall Street consensus forecast of $2.47.
Revenue rose 25% to $8.68 billion, again topping analysts' forecast of an $8.36 billion tally.
Pandemic-related spending, which has shifted consumer treads to lower-priced, thinner-margin items, helped boost same-store sales to 18.8% more than last year's levels, Dollar General said.
At last check Dollar Tree shares were off 6.3% at $97.70, while Dollar General stock was off 1.6% to $200.82.