Dollar Tree Cites Sales Pressure in Q3

CHESAPEAKE, Va. — Dollar Tree here said adjusted earnings improved by 12.2% in the third quarter while the company saw comparable-store sales improve by 1.6%.

Bob Sasser, president and chief executive officer, said sales were pressured as a result of consumer anxiety, a calendar that pushed some Halloween sales to the fourth quarter and by tough comparisons to results in the same period a year ago.

Read more: Dollar Tree to Benefit From Ollie’s Sale [3]

Total sales for the period, which ended Oct. 27, improved 7.8% to $1.72 billion, slightly below analyst estimates. Net earnings of $155.4 million rose 48.6%; or 12.2% excluding income from the previously announced sale of Ollie’s.

Sales increases in the quarter came from growth in basic and variety categories, with basic consumable categories growing at a slightly faster pace, Sasser said. Top performing categories included housewares, home products, health care items, and food and beverage.

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