Nov 17 Retailer Dollar Tree Inc
reported a higher-than-expected third-quarter profit on
Thursday, citing brisk sales of Halloween goods before the
Dollar Tree said some Halloween sales were pushed into the
fourth quarter because the holiday fell on a Monday. On top of
that, a very early snowstorm blanketed parts of the country
where Dollar Tree has stores.
The company's third quarter ended on Oct. 29, two days
before the holiday.
The retailer sells goods for $1 or less at Dollar Tree and
at a variety of prices at its smaller Deal$ chain.
Q3 2011 Estimate* Q3 2010
Revenue $1.60 bln $1.58 bln $1.43 bln
Net income $104.5 mln -- $93.2 mln
EPS $0.87 $0.83 $0.73
Same-store sales 4.8 pct -- 8.7 pct
-- Sales growth came from a mix of basic and discretionary
products, and sales of Halloween and fall merchandise was "very
good," Chief Executive Officer Bob Sasser said on a conference
-- The company sees fiscal-year earnings of $3.94 to $4.01
a share. In August, it had raised that forecast to a range of
$3.82 to $3.95 from a prior outlook of $3.69 to $3.85. The
analysts' average forecast is $3.95 a share, according to
Thomson Reuters I/B/E/S.
-- Dollar Tree forecast fourth-quarter sales of $1.89
billion to $1.94 billion, based on a low-to-mid single-digit
percentage increase at comparable stores. The analysts' average
forecast is $1.91 billion.
-- Shares of Dollar Tree were down 0.3 percent at $75.80 in
morning trading on Nasdaq.
-- The earnings beat stemmed from better-than-expected
same-store sales and square footage growth and a
lower-than-expected tax rate and number of shares, said BMO
Capital Markets analyst Wayne Hood.
-- Days before the report, Deutsche Bank analyst Charles
Grom trimmed his same-store sales expectations for the third
quarter and raised them slightly for the fourth quarter. He
said that roughly 20 percent of the company's stores are
located in areas that were hardest hit by the early snowstorm.
* Estimates according to Thomson Reuters I/B/E/S.