RICHMOND, Va. (AP) — Dollar Tree Inc. said Thursday its first-quarter net income rose nearly 4 percent as shoppers spent more at its discount stores.
The company's results beat Wall Street expectations, and its shares rose more than 8 percent in morning trading.
The company, based in Chesapeake, Virginia, said earnings totaled $138.3 million, or 67 cents per share, in the quarter that ended May 3, up from $133.5 million, or 59 cents per share, a year ago.
That edged out analyst expectations by a penny, according to a poll by FactSet.
Dollar Tree saw revenue increase more than 7 percent to $2 billion. Analysts expected $2.01 billion.
Its shares rose $4.07 to $54.07 in morning trading.
Sales at established stores rose 2 percent. That comparison is a key gauge of a retailer's health. It excludes the volatility associated with stores that recently opened or closed.
The top-performing categories during the quarter included candy, products at the checkout counter, stationery and seasonal merchandise for Valentine's Day and Easter, the company said.
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