May 20, 2010 / 12:30 PM / 8 years ago

UPDATE 1-Dollar Tree profit beats, raises outlook

* Q1 same-store sales up 6.5 pct

* Sees Q2 same store sales up in “low-to-mid single digit”

* Sees Q2 EPS $0.77-$0.85 vs Street View $0.75;

* Sees FY EPS ex charges $4.29-$4.50 vs Street View $3.48

NEW YORK, May 20 (Reuters) - Dollar Tree Inc (DLTR.O) reported a larger-than-expected quarterly profit on Thursday on higher customer traffic and more spending per visit, and the retailer raised its profit outlook.

Dollar Tree, which sells most of its merchandise for $1, said first-quarter net income rose to $63.6 million, or 73 cents per share, from $60.4 million, or 66 cents per share, a year earlier.

Excluding a one-time charge related to its inventory, Dollar Tree reported earnings of 92 cents per share, above analysts’ average forecast of 84 cents, according to Thomson Reuters I/B/E/S.

    Sales at stores open at least a year, a gauge known as same-store sales, rose 6.5 percent during the quarter, which ended May 1, and the retailer expects same-store sales to be up in the “low-to-mid single digit” range in the current quarter.

    On that basis, Dollar Tree forecast earnings per share of between 77 cents and 85 cents during the quarter, above Wall Street forecasts of 75 cents.

    For the full year, Dollar Tree now expects a profit of between $4.29 and $4.50 per share, excluding certain charges. Wall Street analysts have forecast earnings per share of $3.48.

    Reporting by Phil Wahba, editing by Dave Zimmerman

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