Dollar Tree Inc. shares (DLTR) slid 6% in premarket trades Thursday, after the operator of Family Dollar and Dollar Tree stores posted better-than-expected second-quarter earnings but said customer visits are declining during the pandemic. The company said it had net income of $261.5 million, or $1.10 a share, in the quarter, up from $180.3 million, or 76 cents a share, in the year-earlier period. Sales rose to $6.28 billion from $5.74 billion. The FactSet consensus was for EPS of 92 cents and sales of $6.22 billion. Total same-store sales rose 7.2%, above the FactSet consensus of up 6.2%. Family Dollar same-store sales rose 11.6%, while Dollar Tree same-store sales were up 3.1%. The company is not providing guidance, given the uncertainty created by the pandemic, but it noted some changes. "Consumer shopping patterns are evolving," Chief Executive Mike Witynski said in a statement. "Customers are shopping with a purpose, while looking to minimize risk and exposure. As a result, we are seeing material increases in average ticket, while seeing a decline in average visits." The company is still expecting to open 500 new stores by year-end. It ended the quarter with $1.75 billion in cash. Shares have gained 11% in the year to date, while the S&P 500 has gained 7.7%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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