Chesapeake-based Dollar Tree Inc. reported that its second-quarter profits rose 26.2 percent to 77 cents.
The retailer, whose stores sell items for $1 or less, had net sales of $1.54 billion during the three-month period ending July 30. That amount is up 11.9 percent from the same quarter last year.
Comparable-store sales, a common measurement of retail performance, increased 4.7 percent. (Comparable-store sales look at revenue from stores open more than one year.)
“I am pleased with our second-quarter performance as sales, earnings and operating margins continue to expand,” Bob Sasser, the company’s president and CEO said in a statement. “Increases in customer traffic and average ticket drove our sales growth, which was strongest in the latter half of the quarter.”
Operating margin increased 70 basis points (0.7 percent) for the quarter to 10 percent.
Cash and investments at quarter-end totaled about $545 million, compared with $480 million at the end of the second quarter last year.
During the second quarter, Dollar Tree opened 76 stores, expanded or relocated 23, and closed 11.
For the first 26 weeks of the fiscal year, the company had consolidated net sales of $3.09 billion, a 13.1 percent increase from first half of 2010. Comparable store sales were up 5.9 percent.
First half of 2011, earnings per share were $1.59, up from $1.10 in the first six months of 2010.
Dollar Tree estimates sales in the third quarter will range from $1.56 billion to $1.6 billion. Diluted earnings per share are projected to be 77 to 83 cents.
Full-year sales are expected to in the range of $6.53 billion to $6.62 billion, with diluted earnings per share of $3.82 to $3.95.
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