Dollar Tree, Inc. President and CEO Mike Witynski reported on Tuesday (Nov. 24) that the company’s Dollar Tree segment “delivered its strongest same-store sales performance in the past 10 quarters” in Q3.
The company reported that same-store sales increased 4 percent at Dollar Tree and 6.4 percent at Family Dollar. Management also reported that the Dollar Tree segment’s operating margin improved 50 basis points to reach 12.7 percent.
Dollar Tree, Inc. is extending its Dollar Tree Plus! “multi-price initiative” to roughly 500 retail locations starting in spring of next year, according to management.
Witynski said that both rural and urban Family Dollar stores provided mid-single-digit comp increases, with rural slightly outpacing urban. He noted that the firm rolled out the ability to sell its product directly at its website at FamilyDollar.com during the quarter, “providing customers with another way to access great values.”
Dollar Tree, Inc. opened 143 new retail locations, expanded or moved 34 locations and shuttered 16 locations. It also finished 371 remodels to the Family Dollar H2 format. The Fortune 200 company operated just over 15,600 retail locations throughout 48 states and five provinces in Canada as of Oct. 31 of this year.
The company finished the quarter with $1.12 billion in cash on its balance sheet and paid down the $500 million left on its revolving line of credit during the quarter. It also intends to pay off a $300 million legacy Family Dollar note that is due in February of next year.
Management said that capital expenditures for fiscal 2020 are anticipated to be roughly $1 billion.
As for its overall results, Dollar Tree, Inc. reported diluted earnings per share of $1.39 on consolidated net sales of $6.18 billion for Q3. The results exceeded analyst estimates of $1.15 in earnings per share on $6.12 billion in revenue.
“It’s an exciting time at Dollar Tree. We are just over three weeks into our important fourth quarter and we are off to a very good start, with same-store sales at both banners currently tracking above reported third-quarter levels,” Witynski said in the press release.
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