The company said earnings were 46 cents a share, beating Wall Street forecasts of 35 cents, while revenue rose more than 23% to $364.8 million, slightly higher than estimates of $364 million. Same-store sales in the period rose 3.1%, below estimates of 3.7%.
"As a value-driven retailer we are concerned about higher tariffs as they will be impactful to our business and lead to higher prices," CEO Joel Anderson told investors on the earnings call. "With the current $250 billion of products imported from China subject to tariffs, about 15% of our total receipts for 2019 are impacted including both directly and indirectly imported products."
"As we previously discussed we were able to fully mitigate both the dollar and the margin rate impact of the 10% tariff," he added. "We expect to mitigate the jump to 25% and are working on a number of options to do so including vendor negotiations, price increases on our $1 to $4 items, process efficiencies and overtime moving production to other countries."