Summary
Dollar Tree Stores, Inc. reported strong performance in the first quarter of fiscal year 2007, ended May 5, 2007. Net sales increased by 13.8% to $975.0 million, driven by a 5.8% increase in comparable store net sales and the contribution from new and acquired stores. The company also saw a healthy increase in operating income, which rose to $62.3 million, representing 6.4% of net sales, up from 6.2% in the prior year's first quarter. Diluted earnings per share also showed significant improvement, growing to $0.38 from $0.31 in the same period last year. The company continued its aggressive share repurchase program, buying back approximately 3.6 million shares for $153.3 million during the quarter. Looking ahead, Dollar Tree provided a positive outlook, projecting full-year fiscal 2007 sales between $4.28 billion and $4.38 billion, with diluted earnings per share expected to be between $2.00 and $2.12.
Key Highlights
- 1Net sales increased by 13.8% year-over-year to $975.0 million.
- 2Comparable store net sales grew by 5.8%, driven by a 2.7% increase in transactions and a 3.1% increase in transaction size.
- 3Operating income grew to $62.3 million, an improvement in operating margin to 6.4% from 6.2% in the prior year's quarter.
- 4Diluted earnings per share rose to $0.38 from $0.31 in the first quarter of the previous year.
- 5The company repurchased approximately 3.6 million shares for $153.3 million as part of its share repurchase program.
- 6Dollar Tree expanded its store base, operating 3,280 stores as of May 5, 2007, compared to 3,119 stores at the same time last year.
- 7The company reiterated its full-year fiscal 2007 guidance, expecting sales between $4.28 billion and $4.38 billion and diluted EPS between $2.00 and $2.12.