Dollar Tree profit climbs 43%, shares jump

Dollar Tree Inc. shares jumped 13% in premarket trades Thursday after the retailer said its first-quarter profit rose to $536.4 million, or $2.37 a share, from $374.5 million, or $1.60 a share in the year-ago quarter. Sales rose 6.5% to $6.9 billion from $6.48 billion in the year-ago quarter. Wall Street analysts expected Dollar Tree to earn $2 a share on revenue of $6.76 billion, according to FactSet data. “During the quarter, the Dollar Tree team successfully completed its conversion to the $1.25 price point, contributing to both sales and margin improvements,” CEO Michael Witynski said. Looking ahead, Dollar Tree expects second-quarter sales of $6.65 billion to $6.78 billion and earnings of $1.45 a share to $1.55 a share, including costs of 24 cents a share for items. Wall Street analysts expect second-quarter sales of $6.76 billion and earnings of $1.71 a share. Dollar Tree now expects 2022 earnings of $7.80 to $8.20 a share, compared to the analyst estimate of $7.93 a share.

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