Dollar Tree Q1 Profit Rises; Updates FY14 Outlook - Quick Facts

(RTTNews) - Discount retailer Dollar Tree Inc. (DLTR) said that its first-quarter 2014 net income rose to $138.3 million from last year's $133.5 million. Earnings per share were $0.67, a 13.6% increase from $0.59 in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.

Consolidated net sales for the first quarter were $2.00 billion, a 7.2% increase compared to $1.87 billion last year. Wall Street analysts had a consensus revenue estimate of $2.01 billion for the quarter. Consolidated comparable store sales increased 2.0% on a constant currency basis. Adjusted for the impact of Canadian currency fluctuations, the comparable-store sales increase was 1.9%.

"Our first quarter sales grew as the result of increases in both traffic and average ticket with our discretionary business growing slightly faster than consumables," said CEO Bob Sasser. "Leading categories during the quarter included candy, check-out products, stationery and seasonal merchandise for Valentines and Easter."

The company estimates sales for the second quarter of 2014 to be in the range of $1.97 billion to $2.02 billion, based on low-single digit positive comparable store sales. Earnings per share are estimated to be in the range of $0.58 to $0.64. Analysts expect the company to report earnings of $0.64 per share and revenues of $2.01 billion for the second quarter.

Looking ahead for fiscal year 2014, the company now expects earnings per share to be in the range $2.94 to $3.12, on projected annual sales between $8.37 billion to $8.54 billion, based on a range of low-single digit positive comparable store sales. Street currently is looking for fiscal year 2014 earnings of $3.17 per share on annual revenues of $8.51 billion.

The company said in February that it expected earnings to be in the range of $2.91 to $3.13 per share, on projected annual sales between $8.35 billion and $8.58 billion, based on low single-digit positive comparable-store sales for fiscal year 2014.