Business

Dollar Tree quarterly sales beat on pandemic boost

Dollar Tree Inc beat analysts' estimates for quarterly sales on Tuesday, as the discount store operator benefited from higher demand for affordable groceries and other essentials during the COVID-19 pandemic.

FILE PHOTO: A customer walks out of a Dollar Tree discount store in Austin, Texas
FILE PHOTO: A customer walks out of a Dollar Tree discount store in Austin, Texas, U.S., February 27, 2017. REUTERS/Mohammad Khursheed/File Photo

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REUTERS: Dollar Tree Inc beat analysts' estimates for quarterly sales on Tuesday, as the discount store operator benefited from higher demand for affordable groceries and other essentials during the COVID-19 pandemic.

Sales at dollar stores have remained strong even after the initial panic-buying at the start of lockdowns, with high U.S. unemployment and falling household income boosting demand for cheaper cereals, vegetables and other daily essentials.

Net income rose to US$330 million, or US$1.39 cents per share, in the third quarter ended Oct. 31, from US$255.8 million, or US$1.08 cents per share, a year earlier.

Net sales rose to US$6.18 billion, from US$5.75 billion a year earlier, beating the average expectation of US$6.13 billion, Refinitiv IBES data showed.

Shares of Dollar Tree were up 3.5per cent in premarket trading.

(Reporting by Praveen Paramasivam and Mehr Bedi in Bengaluru; Editing by Aditya Soni)

Source: Reuters