Dollar Tree shares surge on big earnings beat, raised forecast
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Dollar Stores are surging on Thursday morning as Dollar Tree (NASDAQ:DLTR) builds upon strong results from Dollar General (DG) before it.

The Virginia-based discount retailer reported big beats on both top and bottom lines, alongside strong sales and profitability trends. For example, same-store sales increased 4.4% in the quarter alongside a 19.2% jump in gross profits as sticker prices were pushed upwards.

âDuring the quarter, the Dollar Tree team successfully completed its conversion to the $1.25 price point, contributing to both sales and margin improvements,â CEO Michael Witynski said. âShoppers are responding favorably as the new, greater value products hit our shelves.â 

He added that the company is also expanding its higher price, $3 and $5 offerings with strong consumer response. 

Moving forward, net sales are expected to reach a range of $6.65 billion to $6.78 billion, in line with analyst consensus set at $6.75 billion. Consolidated net sales are now expected to range from $27.76 billion to $28.14 billion versus the previously expected range of $27.22 billion to $27.85 billion. That figure comes essentially in line with the analyst consensus of $27.89 billion.

Shares rose more than 12% in Thursdayâs pre-market on the promising results.

However, it is worth noting that the Q2 diluted EPS forecast of $1.45 to $1.55 fell short of the $1.70 expected by analysts. For the full year, diluted EPS forecasts of $7.80 to $8.20 were a notable increase from prior outlook of $7.60 to $7.80 though still short consensus of $7.88. 
The forecasts dovetail with bullish results and commentary from Dollar General (DG).