Dollar Tree’s third quarter financial results were within the company’s expectations, and according to Chairman and CEO Rick Dreiling, the performance went even further than that, to be “among the best in retail.”
Same-store net sales were up across the entire portfolio, which consists of Dollar Tree and Family Dollar stores. Dollar Tree same-store net sales were up 5.4% year-over-year while Family Dollar experienced a 2% increase.
Consolidated net sales increased 5.4% to $7.31 billion, and Dollar Tree stores registered a 7% rise in traffic compared to Q3 2022.
Gross profit went up 4.9% year-over-year to $2.17 billion while net income was $212 million.
“We are pleased with our top-line performance in the third quarter,” said Jeff Davis, CFO of Dollar Tree. “In a challenging environment…we continue to grow traffic, unit, and sales per square foot.”
Other accomplishments touted by the company in the third quarter were the opening of 197 new stores and expansion of the multi-price Plus offering to 870 additional Dollar Tree stores.
So far for the fiscal year, consolidated net sales have increased 6.5% to $21.9 billion vs. 2022. Dollar Tree same-store net sales have increased 5.6% driven by a 7.5% increase in traffic. Family Dollar’s same-store sales are up 5.6%.
Gross profit is flat compared to 2022 at $6.5 billion and operating income stands at $1 billion.
Dollar Tree is holding firm on its fiscal year and fourth quarter projections.
The retailer expects Q4 to have consolidated net sales between $8.6 billion and $8.8 billion and a mid-single-digit increase in same-store sales for the Dollar Tree. The company is looking at same-store sales for Family Dollar to fall in the range of a decrease of 1% and an increase of 1%.
For the full fiscal year, the Dollar Tree is looking at consolidated net sales between $30.5 billion and $30.7 billion and mid-single-digit comparable store net sales. Dollar Tree’s store net sales are projected to be in the mid-single digits, while Family Dollar’s store net sales are looking to increase in the low-single digits.
“Our current outlook takes into consideration several factors including continuing strength at the Dollar Tree banner, incremental freight savings, softer demand from low-income households, and a continuation of the shrink and sales mix headwinds we have seen throughout the year,” said Davis.
