Dollar Tree (DLTR) stock rose 4% Wednesday after the discount retailer beat key Wall Street metrics: adjusted earnings, sales and same-store sales growth.
Revenue rose 9.4% to $4.75 billion, slightly ahead of the Street's estimate of $4.7 billion, according to Bloomberg consensus data. Adjusted earnings per share came to $1.21, well above expectations of $1.10. Same-store sales rose 4.2%, exceeding expectations for a 4% increase. The average number of tickets increased by 4.5%, partially offset by a 0.3% decrease in traffic.
“All consumers seek value, and combining that value-seeking behavior with convenience and discovery is the intersection where Dollar Tree thrives,” CEO Michael Creedon told investors on an earnings call.
He said 3 million households have now joined the company's customer base compared to last year, with high-income consumers making more than $100,000 a year making up the majority of new customers.
Meanwhile, 30% of new customers are middle-income households, or households with incomes between $60,000 and $100,000. The remaining 10% are low-income households with incomes below $60,000.
The company also raised its profit outlook. The company expects full-year adjusted earnings to be in the range of $5.32 to $5.72 to $5.60 to $5.80.
The company now expects same-store sales to increase 4% to 6% in the fourth quarter. For the full year, same-store sales are expected to increase 5% to 5.5%.
