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- RESEARCH & AWARDS
A strong second quarter showing gave Dollar Tree one of its best starts to a year in company history, CEO Bob Sasser told analysts last week.
Sasser said the company’s operating margin grew 70 basis points in the first six months of 2012 to 10.9 percent, the highest first half operating margin in the company’s history. Profits grew 20.1 percent in the first six months, and earnings per share rose 27.8 percent.
Same-store sales rose 4.5 percent in the second quarter, “driven principally by increases in traffic,” Sasser said. And total sales in the quarter rose 10.5 percent from a year earlier.
Asked on a conference call with analysts about buyers’ last trip overseas, Sasser gave some insight on how his company plans for the future.
“Our merchants recently returned from Asia where they were placing orders for our need through the summer of next year,” he said, according to transcripts of the call from Seeking Alpha. “We don’t set plan-o-grams, we’re not stuck on any one item. Our merchants go to market, whether it’s in the U.S. or China or anywhere else in the world with really two goals – one, to give the most value to our customers for the dollar, and number two, at the margin that we need for our financials.
“They can always change an item, they can drop an item, they can add an item, but at the end of the day, we’re always in control of our margin for that reason, and this trip was no different in that regard.”