Dollar Tree (DLTR) reported sales and profits that improved in Q1 2014, which has sent DLTR shares on the upswing.
While revenues of $2 billion were up 7%, they were just shy of estimates of $2.01 billion. However, earnings of $138.3 million (67 cents per share) were more than 3% higher than the year-ago quarter and bested analysts’ expectations for 66 cents per share.
The increase, Dollar Tree says, is due to higher customer traffic and the stores’ seasonal merchandise.
“Our first quarter sales grew as the result of increases in both traffic and average ticket with our discretionary business growing slightly faster than consumables,” said CEO Bob Sasser. “Leading categories during the quarter included candy, check-out products, stationery and seasonal merchandise for Valentines and Easter.
The company also bumped up its earning guidance a few cents to a range of $2.94-$3.12, and now sees revenue coming in a range of $8.37 billion to $8.54 billion.
DLTR responded by gaining more than 7% by midday, though shares remain down about 5% for the year-to-date.