Dollar Tree quarterly sales beat on pandemic boost

[November 24, 2020]  (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 $330 million, or $1.39 cents per share, in the third quarter ended Oct. 31, from $255.8 million, or $1.08 cents per share, a year earlier.

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

Shares of Dollar Tree were up 3.5% in premarket trading.

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

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