Earnings per Diluted Share increase to $0.82
- Consolidated net sales increase 14.3%
- Comparable store sales increase 7.1%
CHESAPEAKE, Va. - May 19, 2011 - Dollar Tree, Inc. (NASDAQ: DLTR), North America's leading operator of discount variety stores selling everything for $1 or less, reported its results for the quarter ended April 30, 2011 ("first quarter"). Consolidated net sales for the first quarter were $1.55 billion, a 14.3% increase compared to $1.35 billion reported for the quarter ended May 1, 2010 ("first quarter 2010"). Comparable store sales increased 7.1%, on top of a 6.5% increase for the first quarter 2010.
Earnings per diluted share for the first quarter were $0.82, compared to earnings per diluted share of $0.49 reported for the quarter ended May 1, 2010, which included a non-recurring, non-cash charge of $26.3 million relating to a retail inventory accounting change in the first quarter 2010. The Company's earnings per diluted share of $0.82 in the first quarter 2011 were an increase of 34.4% compared to the first quarter 2010 earnings per diluted share of $0.61, absent the charge.
"I am pleased by Dollar Tree's continuing growth in sales and earnings," President and CEO Bob Sasser said. "Our business momentum was strong throughout the first quarter. Seasonal performance was outstanding from Valentine's through Easter. Both traffic and ticket increased as more customers continue to rely on Dollar Tree for great merchandise values and a fun, convenient shopping experience.
"The 7.1% comp-store sales increase following strong first quarter growth for the past two years is further validation of Dollar Tree's efforts to find more ways to provide more value to more customers every day."
Operating margin for the quarter was 10.5%, a 290 basis point improvement from the 7.6% operating margin in the first quarter 2010, and a 100 basis point improvement from the 9.5% operating margin in the first quarter 2010, absent the aforementioned charge in the first quarter last year.
Cash and investments at quarter-end totaled $510.3 million, compared with $390.1 million at the end of the first quarter 2010. During the first quarter, the Company repurchased 1.7 million shares for $88.6 million, and has $257.4 million remaining on its share repurchase authorization.
The Company continues to grow. During the first quarter, Dollar Tree opened 83 stores, closed 7 stores, and expanded or relocated 41 stores. Retail selling square footage increased 9.0% compared to a year ago, to 36.0 million square feet.
The Company estimates sales for the second quarter of 2011 to be in the range of $1.51 billion to $1.55 billion, based on low -to- mid single digit positive comparable store sales. Diluted earnings per share are estimated to be in the range of $0.68 to $0.75.
Full year sales are now estimated to be in the range of $6.50 billion to $6.63 billion. This estimate is based on a range of low -to- mid single digit positive comparable store sales. Diluted earnings per share are expected to be $3.69 to $3.85. The Company reported earnings per diluted share for fiscal 2010 of $3.10, which includes the impact of the aforementioned charge. Excluding the charge, earnings per diluted share were $3.23 for fiscal 2010.
On Thursday, May 19, 2011, the Company will host a conference call to discuss its earnings results at 9:00 a.m. EDT. The telephone number for the call is 888-811-5448. A recorded version of the call will be available until midnight Thursday, May 26, and may be accessed by dialing 888-203-1112, and the access code is 9902996. A webcast of the call is accessible through Dollar Tree's website, www.dollartreeinfo.com/investors/news/events and will remain online until midnight Thursday, May 26.
Dollar Tree, a Fortune 500 Company, operated 4,177 stores in 48 states and 4 Canadian Provinces as of April 30, 2011, with total retail selling square footage of 36.0 million. To learn more about the Company, visit www.DollarTree.com.
A WARNING ABOUT FORWARD LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events, developments or results and typically use words such as believe, anticipate, expect, intend, plan, forecast, or estimate. For example, our forward-looking statements include statements regarding second quarter and full year sales, second quarter and full year diluted earnings per share, and second quarter comparable store sales. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10 K filed March 17, 2011. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.
Dollar Tree, Inc., Chesapeake
Timothy J. Reid, 757-321-5284