Dollar Tree benefits from shift in shopper’s habits
- March 27, 2009
Some stocks refuse to follow the downward spiral of the stock market. One of them is Chesapeake-based Dollar Tree Stores Inc., which is on the Virginia Business Stock Index.
The company’s stock declined 3.89 percent in February but had risen 44.69 percent during the previous 12 months. Only 10 of the 50 stocks on the index posted a gain during that time.
Market analysts say the company’s rising fortunes are partly due to a shift by consumers to more shopping at discount stores because of the recession.
In the fourth quarter 2008, Dollar Tree’s profits increased 11 percent to $105.2 million or $1.15 per share on sales of $1.39 billion. For the full year, net income rose from $201.3 million to $229.5 million.