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Burlington, Dollar Tree Show Solid Q2 Results

Burlington, Dollar Tree Show Solid Q2 Results

Q2 financial results that outperformed Wall Street expectations for Burlington Coat Factory and Dollar Tree showcase the health of off-price retail, even as sectors such as department stores continue to struggle.

Total Q2 sales for Burlington increased 8.6% over the same period last year, reaching $1.3 billion. The growth was driven by an increase of $70 million from new and non-comparable stores, along with a 3.5% increase in comp store sales. Net income climbed 130% over the prior year to $47 million, or $0.66 per diluted share vs. $0.28 last year.

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“We are extremely pleased to report strong second quarter results,” said Tom Kingsbury, Burlington CEO in a statement. “Our inventories are fresh, we are well positioned for Back to School, and we have significant open-to-buy entering the third quarter as opportunities remain plentiful.”

Dollar Tree, which acquired its former rival Family Dollar in 2015, saw consolidated net sales increase 5.7% to $5.28 billion in Q2, helped by same-store sales growth of 2.4%. The Dollar Tree banner’s same-store sales growth outpaced Family Dollar’s, 3.9% to 1.0%.

Net income rose to $233.8 million for Q2, a 37% increase over the same period last year. Diluted earnings per share rose 36.1% to $0.98, up from $0.72 in Q2 of 2016.

"Both Dollar Tree and Family Dollar produced positive same-store sales, our enterprise operating margin improved 80 basis points and earnings per share exceeded the high end of our guidance range,” said CEO Bob Sasser in a statement. “Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience."

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