Dollar Tree Boosts Fourth-Quarter Net by 20 Percent

       

       

CHESAPEAKE, Va.–Fourth-quarter net income for Dollar Tree finished at $162.5 million, 20 percent ahead of the bottom line for last year’s fourth quarter.

The results wrapped up a fiscal year in which the discount retailer set records for both sales and earnings for both the quarter and the year as a whole. Net sales for the quarter totaled $1.7 billion, up 11 percent from last year. In addition, Dollar Tree enjoyed a gross-margin increase of 50 basis points to 37.6 percent. While selling, general and administrative expenses in dollar terms rose 8.1 percent, they shed 50 basis points as a percentage of sales to 22.6 percent.

Dollar Tree’s gains for the full year were even more impressive. Net income rose 24 percent to $397.3 million, and net sales were up 12 percent to $5.9 billion.

Bob Sasser, president and chief executive officer, said Dollar Tree’s fourth-quarter sales were particularly strong in its stores in the Southeast and Southwest. Sasser also noted that the retailer’s inventory turns rose for the sixth straight year in 2010.

Posted in News, Retail.

Last updated: February 24, 2011