(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)
