Another Prosperous Quarter for Dollar Tree Stores
Posted By Vicki McClure Davidson on February 25, 2009
Press Release: February 25, 2009
Dollar Tree, Inc. Reports Record Earnings per Share Fourth Quarter 2008 Earnings per Share Increase 10.6%, To $1.15 Fiscal Year 2008 Earnings per Share Increase 21.1%, To $2.53
Dollar Tree, Inc. Reports Record Earnings per ShareFourth Quarter 2008 Earnings per Share Increase 10.6%, To $1.15 Fiscal Year 2008 Earnings per Share Increase 21.1%, To $2.53 CHESAPEAKE, Va. – February 25, 2009 – Dollar Tree, Inc. (NASDAQ: DLTR), the nation’s largest discount variety store chain selling everything for $1 or less, reported earnings per diluted share of $1.15, for the fiscal fourth quarter ended January 31, 2009, an increase of 10.6% from the $1.04 per diluted share for the fiscal fourth quarter ended February 2, 2008.
As previously reported, sales for the quarter were $1.39 billion, a 6.8% increase compared to the $1.30 billion for the same period, one year ago. Comparable-store sales for the quarter increased 2.2%.
“I am proud of the Company’s performance in the fourth quarter, and through all of 2008,” said President and CEO Bob Sasser. “Dollar Tree’s exceptional values, expanded selection of basic consumables, and convenient, friendly shopping experience are more relevant than ever. Customers know they can save money and stretch their household budgets at Dollar Tree, and they are responding in record numbers. Customer traffic, sales and earnings all continued to grow in the fourth quarter.”
For the fourth quarter 2008, gross margin was 35.6%, compared with 35.8% in the fourth quarter last year. The decline in rate reflects the continued planned shift in merchandise mix, which was partially offset by lower fuel costs. Selling, general and administrative expenses, as a percentage of sales, were 23.7% in the fourth quarter of 2008, versus 23.9% in the fourth quarter 2007. The improvement in rate reflects lower depreciation and reduced advertising expense.
For the year, sales totaled $4.64 billion, a 9.5% increase year-over-year, on a comparable store sales increase of 4.1%. Operating margin increased to 7.9% in 2008, from 7.8% one year ago. Diluted earnings per share were $2.53, an increase of 21.1% from diluted earnings per share of $2.09 in 2007. In 2008, Dollar Tree opened 231 stores, closed 51 stores and expanded or relocated 86 stores. Retail selling square footage grew 6.7% compared to a year ago. Total inventory grew by 5.4% compared with a year ago, while inventory on a selling square foot basis decreased 1.2%. The Company increased its year-end cash and investments, net of debt, by $284.2 million compared with last year.
“Dollar Tree has a strong balance sheet, continues to expand its store base and is well-positioned for the spring season,” said Mr. Sasser. The Company estimates sales for the first quarter of 2009 to be in the range of $1.13 – $1.16 billion, based on low-to mid-single digit comparable store sales, and 6.5% square footage growth. Diluted earnings per share are expected to be in the range of $0.49 to $0.54. For the full year, the Company estimates sales will range from $4.96 – $5.09 billion. This estimate is based on low to low-mid single digit comparable-store sales, and square footage growth of approximately 6.5% for the year. Fiscal year 2009 diluted earnings per share are expected to be in the range of $2.55 to $2.75. These estimates assume no share repurchase activity in 2009.
On Wednesday, February 25, 2009, the Company will host a conference call to discuss its earnings results at 9:00 a.m. EST. The telephone number for the call is 888-791-4305. A recorded version of the call will be available until midnight Wednesday, March 4, and may be accessed by dialing 888-203-1112, and the access code is 5293344. International callers may dial 719-457-0820 and the access code is 5293344. A webcast of the call will be accessible via Dollar Tree’s website, www.DollarTree.com/medialist.cfm.
As of January 31, 2009, Dollar Tree operated 3,591 stores in 48 states. The Company’s retail selling square footage totaled approximately 30.3 million at January 31, 2009. The Company also operates a coast-to-coast logistics network of nine distribution centers. To learn more about the Company, visit www.Dollartree.com.
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