Dollar Tree reported record Halloween sales boosted its third-quarter results to set the pace for the discount retailer’s year-end holiday push.
Income from continuing operations was $244.6 million, or $1.20 per diluted share, versus $232.3 million, or $1.08 per diluted share, in the year-past quarter. Adjusted for one-time events, income from continuing operations was $246.1 million, or $1.21 per diluted earnings per share, versus $233.1 million, or $1.08 per diluted share, in the year-before period, the company reported.
An analyst consensus estimate from Zacks Investment Research pegged adjusted diluted earnings per share at $1.09 and revenues at $4.74 billion.
Net sales increased 9.4% to $4.75 billion, from the year-prior period, as same-store net sales increased by 4.2%, driven by a 4.5% increase in average ticket against a 0.3% decrease in traffic. Revenues increased to $4.75 billion from $4.34 billion in the year-previous period.
Operating income increased 3.8% to $343.3 million, while adjusted operating income increased 4.1% to $345.3 million from the prior-year quarter.
Dollar Tree revised its full-year guidance, now for comparable store sales to grow 5% to 5.5% and net sales in a range to $19.35 to $19.45 billion and adjusted EPS from continuing operations in a range of $5.60 to $5.80. Prior guidance was for comps to gain by 4% to 6%, net sales in a range of $19.3 to $19.5 billion and adjusted EPS from continuing operations in a range of $5.32 to $5.72.
“Our multi-price strategy drove strong momentum across our business in the third quarter and helped deliver an all-time record Halloween season,” said Mike Creedon, Dollar Tree CEO. “Today’s Dollar Tree is a preferred destination for a wide range of shoppers, whether they rely on us for everyday essentials, appreciate a fast and easy trip, or enjoy the excitement of discovering something unexpected. With 85% of our assortment priced at two dollars or less, we continue to deliver exceptional value, while our multi-price assortment allows us to offer even more high-quality products and great gift options for the holidays. I’m incredibly proud of our team for delivering such a standout performance this quarter. And as we head into peak holiday season, we’re ready to bring even more value, convenience and discovery to our growing base of loyal customers.”
