Boston, MA 05/22/2014 (wallstreetpr) – Leading operator of discount variety stores, Dollar Tree, Inc. (NASDAQ:DLTR), is surging in early-morning trading session after reporting first quarter profits that beat estimates. The retail store sales for the quarter grew as a result of increased traffic into the stores. Discretionary business, on the other hand, grew faster than consumables contributing to the quarter’s solid results.
Cash and Cash Equivalent Increases
Dollar Tree, Inc. (NASDAQ:DLTR)’s leading categories during the quarter were candy, check out products and seasonal merchandise for Easter and Valentine festivities. The company’s stores are currently packed with a variety mix of consumable products, as well as exciting merchandise for summer fun. Dollar Tree has a good choice of clean and fresh inventory with its associates focused on providing a lifetime shopping experience to customers.
Cash and cash equivalent for the quarter surged to $387.1 million up from $383.3 million as of December despite the ongoing investments in share repurchases. Over the past four quarters, the retail store has invested more than $1 billion in its share repurchase program. Dollar Tree opened a total of 94 stores during the quarter, closing 6 and relocating 28. The retail store’s square footage is at a high of 6.8% from a year ago, covering 44 million square feet.
Q1 Profit Increases
Dollar Tree, Inc. (NASDAQ:DLTR)’s first quarter profit rose to $138.3 million up from $133.5 million a year earlier with net sales also surging to $2 billion from $1.87 billion for the same period. The company’s earnings per share for the quarter improved by 13.6% to $0.67 up from $0.59 reported a year earlier. Going forward, Dollar Tree expects its second quarter sales to come in the range of between $1.97 billion and $2.02 billion as a result of positive comparable store sales.
Full year sales according to Dollar Tree, Inc. (NASDAQ:DLTR)’s estimates should come in the range of between $8.37 billion and $8.54 billion. Earnings per share for the year should be in the range of between $2.94 and $3.12, according to estimates.
