By Sam Boughedda
Investing.com -- Dollar Tree Inc (NASDAQ: DLTR ) reported its first-quarter results on Thursday, sending its shares 14.9% higher in the early part of the session.
The company reported better-than-expected earnings, with soaring inflation seemingly pushing people towards discount stores.
The discount retail store saw revenue increase 6.5% from the prior year's quarter to $6.9 billion and beat analysts' consensus of $6.77 billion. Furthermore, earnings per share of $2.37 were enough to trump the $2.01 forecasted.
Meanwhile, gross profit grew 19.2% to $2.34 billion, driven by improved initial mark-on and favorable product mix in the Dollar Tree segment.
"During the quarter, the Dollar Tree team successfully completed its conversion to the $1.25 price point, contributing to both sales and margin improvements," stated President and CEO Michael Witynski.
Witynski added, "shoppers are responding favorably as the new, greater value products hit our shelves."
Furthermore, the company raised its outlook for fiscal 2022, with net sales now expected to be between $27.76 billion and $28.14 billion, up from $27.22 billion to $27.85 billion. In addition, earnings per share are now expected to be in the range of $7.80 to $8.20 from $7.60 to $8.
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