Press Releases

As previously reported, sales increased $33.7 million over sales for the third quarter of 1997, and sales in comparable stores increased by 2.9%. Year to date, sales increased $111.3 million over sales for the same period last year, and sales in comparable stores increased by 6.8%.

Gross margin for the quarter increased to 38.7% of sales compared to 37.8% for the same quarter last year. This increase is due primarily to improved pricing and the earlier receipt of import merchandise.

Operating expenses increased to 27.3% of net sales for the third quarter of 1998, compared to 27.2% for the third quarter of 1997. This increase resulted from increased payroll, primarily due to the minimum wage increase in 1997, and depreciation, offset by a general reduction in operating expenses resulting from cost controls.

Year to date, net sales, earnings, and earnings per share in 1998 were $500.8 merchandise costs (including freight) and a reduction in shrink and markdown costs. The improvement in merchandise costs is primarily due to favorable million, $29.1 million and $0.45 per share, respectively, compared to net sales, earnings, and earnings per share through the third quarter of 1997 of $389.5 million, $18.3 million, and $0.28 per share, respectively.

Dollar Tree Stores, Inc. is a leading discount variety store chain offering a wide assortment of quality everyday general merchandise, in many traditional variety store categories, at the $1.00 price point. Dollar Tree Stores operates 1,054 stores in 29 states as of September 30, 1998, having added 75 new stores and closed one store in the quarter, for a total of 171 new stores and four closed stores in 1998.