Dollar Tree sales up ahead of merger
Discount retailer Dollar Tree Inc. announced Wednesday that its fourth-quarter sales grew 10.8 percent to $2.48 billion.
Quarterly profit was $206.6 million, or $1 per share, compared with $213 million, or $1.02 per diluted share, during the fourth quarter of 2013. Profit would be $239 million excluding costs associated with Dollar Tree’s pending acquisition of Family Dollar.
The Chesapeake-based company also announced that it expects to divest no more than 300 stores to gain clearance from the Federal Trade Commission for the Family Dollar deal. Dollar Tree said it expects to reach an agreement with the FTC in early March and wants to close on the Family Dollar deal by April 27.
During the fourth quarter, Dollar Tree opened 90 stores, expanded or relocated six stores and closed five stores. Retail selling space increased 7.4 percent to 46.5 million square feet.
Full-year sales rose 9.7 percent to $8.6 billion, compared with $7.84 billion the prior year. Profit for 2014 rose $2.5 million to $599.2 million, or $2.90 per diluted share, including acquisition-related costs.