Dollar Tree, Inc. (NASDAQ: DLTR) announced financial results for its first quarter. Net sales increased 8.2% to USD 6.29 Billion compared to USD 5.81 Billion in the prior year. Gross profits increased 3.9% to USD 1.79 Billion. Operating income was USD 365.9 Million compared to USD 385.5 Million in the same period last year.
“I am extremely proud of the team’s extraordinary efforts to serve customers through what has been an incredibly tumultuous time,” stated Gary Philbin, Chief Executive Officer. “After a relatively normal first month in the quarter, our stores experienced an unprecedented spike in demand for certain products in March. The teams quickly rose to the challenge to make our stores safer for associates and customers by following CDC guidelines, along with enhanced cleaning protocols. We were focused and dedicated to delivering essentials to customers when they needed us most.”
Mike Witynski, Enterprise President, added, “Family Dollar delivered strong same-store sales with a 15.5% increase and a 230 basis point improvement in operating margin. Dollar Tree same-store sales decreased by 90 basis points, as the seasonal and discretionary business was materially impacted by lower Easter holiday sales. The most negatively impacted categories – party, candy, and Easter – affected Dollar Tree’s overall comp for the quarter by approximately 490 basis points.”
As an essential business, Dollar Tree held over 15,000 stores open to the public during the COVID-19 pandemic.
The company expects capital expenditures for fiscal 2020 to reach USD 1 Billion, a drop from its previous prediction of USD 1.2 Billion.