Summary
Dollar Tree, Inc. reported strong financial performance for the 39 weeks ended October 27, 2012, with net sales increasing by 9.9% to $5.15 billion compared to the same period in the prior year. This growth was driven by both new store openings and a 3.9% increase in comparable store net sales, indicating healthy organic growth. The company also demonstrated improved operating leverage, with selling, general, and administrative expenses decreasing as a percentage of net sales, leading to a higher operating income margin. A significant event during the period was the gain of $60.8 million from the sale of its investment in Ollie's Holdings, Inc., which boosted net income. While gross profit margin saw a slight decrease due to higher freight costs and a shift in merchandise mix towards consumables, overall profitability remained robust, with diluted earnings per share increasing to $1.69 for the 39-week period. The company also maintained a strong liquidity position, with a new $750 million unsecured credit facility in place and significant remaining authorization for share repurchases.
Financial Highlights
43 data points| Revenue | $1.72B |
| Cost of Revenue | $1.12B |
| Gross Profit | $599.60M |
| SG&A Expenses | $415.40M |
| Operating Income | $184.20M |
| Net Income | $155.40M |
| EPS (Basic) | $0.68 |
| EPS (Diluted) | $0.68 |
| Shares Outstanding (Basic) | 228.80M |
| Shares Outstanding (Diluted) | 230.00M |
Key Highlights
- 1Net sales for the 39 weeks ended October 27, 2012, increased by 9.9% to $5.15 billion year-over-year.
- 2Comparable store net sales grew by 3.9% for the 39 weeks ended October 27, 2012, indicating strong performance in existing stores.
- 3Operating income as a percentage of net sales improved to 10.8% for the 39-week period, reflecting effective cost management and leverage.
- 4The company recognized a significant pre-tax gain of $60.8 million from the sale of its investment in Ollie's Holdings, Inc.
- 5Diluted earnings per share for the 39 weeks ended October 27, 2012, were $1.69, up from $1.23 in the prior year.
- 6Dollar Tree entered into a new $750 million unsecured credit facility, enhancing its financial flexibility.
- 7The company continues to expand its store footprint, opening 298 new stores and adding 2.7 million selling square feet in the first 39 weeks of fiscal 2012.