Dollar Tree Sees Sales, Profit Increase in Q1 2022

Dollar Tree has shared its financial results from Q1 2022, highlighted by an increase in net sales, net income and gross profit.

For the period ended April 30, consolidated net sales increased 6.5% to $6.90 billion from $6.48 billion in the prior year’s first quarter. Enterprise same-store sales increased 4.4%. Comparable store sales for Dollar Tree increased 11.2%. Family Dollar, owned by Dollar Tree, saw same-store sales decrease 2.8%. 

During the quarter, approximately 400 Family Dollar stores were temporarily closed due to a product-related recall, which negatively impacted Family Dollar’s quarterly comparable store sales by an estimated 200 basis points.

Net income increased 43.2% to $536.4 million in Q1 and diluted earnings per share for the quarter increased 48.1% to a first quarter company record $2.37, compared to $1.60 in the prior year’s quarter.

The numbers follow Dollar Tree’s decision to raise its price point to $1.25 last fall, citing increased costs.

“Our initiatives are working and providing increased profits and cash flow. We believe now is the ideal time to accelerate investments focused on driving growth through improved associate and shopper experience, while propelling greater efficiencies,” said Michael Witynski, president and CEO of Dollar Tree. “We anticipate these multi-year investments will be focused around our associates, our distribution network and supply chain, our pricing and value proposition, and our technology.”

During the quarter, Dollar Tree opened 112 new stores, expanded or relocated 33 stores, and closed 30 stores. Additionally, the company expanded its multi-price Plus offering into an additional 790 Dollar Tree stores and completed 118 Family Dollar store renovations.