It was a strong second quarter for Dollar Tree as the retailer reported solid gains in sales and gross profit.
For the quarter ended July 30, total sales grew 6.7% to $6.8 billion. Net income increased 27.4% to $359.9 million and diluted earnings per share for the quarter increased 30.1% to a second quarter company record $1.60, compared to $1.23 in the prior year’s quarter. Comparable store net sales for Dollar Tree stores increased 7.5% and Family Dollar same-store sales increased 2.0%.
“Our second quarter performance reinforces the relevance of our brands for millions of households pressured by higher costs for food, fuel, rent and more,” said Mike Witynski, president and CEO. “We are improving the shopper experience and positioning the company to deliver long-term profitable growth and attractive returns on capital.”
During the quarter, the company opened 127 new stores, expanded or relocated 29 stores, and closed 57 stores. Additionally, the Company expanded its multi-price Plus offering into an additional 697 Dollar Tree stores and completed 257 Family Dollar store renovations. Retail selling square footage at quarter-end increased 3.1% from the prior year’s quarter to approximately 130.7 million square feet.
For the first six months, consolidated net sales increased 6.6% to $13.67 billion. Enterprise same-store sales increased 4.7%. Dollar Tree same-store sales increased 9.4% and same-store sales at Family Dollar decreased 0.4%.
Additionally, Dollar Tree named Jeffrey A. Davis as chief financial officer. He most recently served as chief financial officer of Qurate Retail Group, Inc., parent company of QVC and HSN. He also served in financial leadership roles at Walmart, JCPenney and Darden Restaurants.