10-QPeriod: Q1 FY2012

DOLLAR TREE, INC. Quarterly Report for Q1 Ended Apr 30, 2011

Filed May 19, 2011For Securities:DLTR

Summary

Dollar Tree, Inc. (DLTR) reported strong first-quarter results for fiscal year 2011, with net sales increasing by 14.3% year-over-year to $1.55 billion. This growth was driven by a healthy 7.1% increase in comparable store net sales, attributed to higher customer traffic and an increased average transaction value. The company's strategic initiatives, including the expansion of frozen and refrigerated merchandise and the acceptance of SNAP benefits in more stores, continue to positively impact sales and customer visits. Profitability also showed significant improvement, with operating income rising substantially due to increased net sales and effective cost management, particularly in selling, general, and administrative expenses. The company's balance sheet remains robust, with ample liquidity and a strong cash flow from operations, which funded capital expenditures and significant share repurchases. Management remains optimistic about continued growth, supported by store expansion and favorable merchandise mix trends.

Financial Highlights

42 data points
Beta

Revenue

$1.55B

35.0% Gross Margin

Net Income

$101.00M

6.5% Net Margin

EPS (Diluted)

$0.41

Total Assets

$2.38B

Cash & Equivalents

$371.30M

Free Cash Flow

$98.00M

Financial Statements
Beta
Revenue$1.55B
Cost of Revenue$1.01B
Gross Profit$540.80M
SG&A Expenses$379.10M
Operating Income$161.70M
Net Income$101.00M
EPS (Basic)$0.41
EPS (Diluted)$0.41
Shares Outstanding (Basic)245.20M
Shares Outstanding (Diluted)247.00M

Key Highlights

  • 1Net sales surged 14.3% to $1.55 billion for the 13 weeks ended April 30, 2011.
  • 2Comparable store net sales increased by a robust 7.1%, indicating strong performance in existing stores.
  • 3Operating income increased significantly, reflecting improved sales leverage and expense control.
  • 4The company opened 83 new stores and expanded 41 during the quarter, continuing its growth trajectory.
  • 5Net cash provided by operating activities dramatically increased to $156.3 million, up from $35.8 million in the prior year.
  • 6Dollar Tree repurchased approximately 1.7 million shares for $88.6 million during the quarter, highlighting a commitment to returning capital to shareholders.

Frequently Asked Questions

Dollar Tree reported a significant 14.3% increase in net sales, reaching $1.55 billion for the 13 weeks ended April 30, 2011. This growth was fueled by a strong 7.1% rise in comparable store net sales, driven by increased customer traffic and a higher average ticket size.

The company continues its expansion strategy, opening 83 new stores and expanding 41 existing ones during the first quarter. At the end of the quarter, Dollar Tree operated 4,089 stores in the U.S. and 88 in Canada.

Profitability improved significantly due to increased net sales and effective cost management. Selling, general, and administrative expenses decreased as a percentage of net sales, primarily due to leveraging comparable store sales growth and lower payroll-related and health insurance costs. Operating income as a percentage of net sales increased to 10.5%.

Dollar Tree demonstrated strong operational cash flow, generating $156.3 million, a substantial increase from the previous year. This robust cash flow supported capital expenditures for new stores and distribution center expansion, as well as significant share repurchases totaling $88.6 million.