If you have stock in Dollar Tree, there’s reason to rejoice. The second quarter of fiscal 2012 showed strong sales, though they nearly missed Wall Street estimates.
Discount retailer Dollar Tree Inc. reported Thursday that its net sales increased 26 percent in the second quarter of the fiscal year as more and more consumers shopped at its stores that specialize in goods totaling $1 or less, according to Yahoo!News. Net sales for the second quarter were $1.70 billion, which shows a 10.5 percent increase compared to $1.54 billion reported in the second quarter of 2011. Comparable store sales went up 4.5 percent over a 4.7 percent increase for the second quarter of 2011.
“I am pleased with our second quarter performance,” President and CEO Bob Sasser said. “Dollar Tree continues to deliver consistently strong sales and earnings. I am particularly proud of the increases in operating margin and inventory turns. We remain focused on providing great values for our customers and superior returns for our shareholders. Our stores are well-stocked with a terrific, balanced assortment of relevant merchandise for our customers and we are ready for an exciting fall season.”
The company’s quarterly earnings of 51 cents per share clocked in ahead of the Zacks Consesus Estimate of 47 cents. Furthermore, Dollar Tree Inc. registered an upside of 30.8 percent year over year, reports Yahoo!Finance.
Dollar Tree expects 2012 net income to clock in between $2.45 and $2.54 per share based on revenue of $7.36 billion and $7.45 billion. The company also oversaw a two-for-one stock split during the quarter, which would lower its share price and make the stock more attractive to investors. Dollar Tree shares fell 89 cents to close at $49.11. The stock saw a drop as low as $38.40 during the session and has ranged from $30.56 to $56.82 in the past 52 weeks.
Now might be a good time to invest in Dollar Tree as their sales are expected to continue such growth.