The largest dollar store chain operator in the U.S., Dollar Tree, has reported solid 3Q earnings that came in ahead of analyst expectations on Wall Street. According to news from CNBC, the earnings beat was powered by better-than-expected consumer foot traffic and higher-than-expected in-store sales.
Comparable store sales were up 3.3 percent, ahead of the 2.4 percent the market was looking for. Revenue at the namesake Dollar Tree stores were up 5.2 percent, well ahead of the 3.2 percent analysts were expecting. Net income was up to $239.9 million, or $1.01 per stock during Q3. That’s up from $171.6 million, or $0.72, from a year earlier.
Net sales for 3Q rose 6.3 percent to $5.32 billion.
Dollar stores have been something of an outlier in the tight world of retail sales, particularly in grocery, where the dominant instinct of late has been to cut prices. Dollar Tree, according to reports, has been relying more on its smaller store sizes, smaller product assortments and consistently very low prices to lure bargain-hungry shoppers.
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