Dollar Tree posted stronger-than-expected first-quarter earnings and sales.
The Chesapeake, Va.-based chain on Thursday posted adjusted first-quarter earnings of $247.6 million, or $1.04 a share, vs. $267.9 million, or $1.14 a share, a year ago. Sales were $6.29 billion vs. $5.81 billion in the year-earlier quarter.
However, while the numbers were below last year's numbers, the results beat analysts' forecasts.
Analysts polled by FactSet had been expecting per-share earnings of 85 cents on sales of $6.1 billion.
Same-store sales, a key metric used to measure in-store sales activity, rose 7% during the quarter. Same-store sales for the Family Dollar brand increased 15.5% while Dollar Tree's same-store sales dropped 0.9%, according to the company.
“After a relatively normal first month in the quarter, our stores experienced an unprecedented spike in demand for certain products in March,” said CEO Gary Philbin.
Offsetting that demand were sales of Easter holiday items, which were “materially impacted” during the quarter, “affecting Dollar Tree’s overall comp for the quarter by approximately 490 basis points,” said the company in a statement.
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