Dollar Tree shares rise on profit jump
Dollar Tree Inc reported a better-than-expected 51 percent jump in quarterly profit on Wednesday and boosted its full-year profit forecast, as customers flocked to its stores for inexpensive food, cleaning supplies and toys.
The retailer, which sells most of its merchandise for $1, said net income rose to $56.9 million, or 63 cents per share for its second quarter that ended August 1, compared with $37.6 million, or 42 cents per share, a year earlier.
Analysts, on average, had been expecting it to earn 54 cents per share, according to Reuters Estimates.
Earlier this month, it said quarterly sales rose 12 percent to $1.22 billion, while sales at stores open at least a year, a key retail gauge known as same-store sales, rose 6.8 percent.
For its third quarter, it forecast earnings per share of 58 cents to 64 cents. It now expects full-year earnings of $3.10 to $3.25 a share. It previously forecast full-year earnings of $2.75 to $2.90 per share.
Its shares rose 4.4 percent to $50 in premarket trading.
(Reporting by Nicole Maestri; Editing by Maureen Bavdek)
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