Dollar Tree beats quarterly sales estimates

FILE PHOTO: A customer walks out of a Dollar Tree discount store in Austin, Texas, U.S., February 27, 2017. REUTERS/Mohammad Khursheed/File Photo

(Reuters) - Dollar Tree Inc DLTR.O beat quarterly sales expectations on Thursday, as the discount retailer benefited from higher demand for affordable groceries and other essentials due to the COVID-19 pandemic.

Net sales rose 9.4% to $6.28 billion in the second quarter ended Aug. 1, beating analysts’ average estimate of $6.22 billion, according to IBES data from Refinitiv.

Overall same-store sales rose 7.2% in the quarter. Larger Rival Dollar General Corp DG.N reported an 18.8% rise earlier on Thursday.

Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur