Boston, MA 08/21/2114 (wallstreetpr) – Retail market in US is not dependent to Wal-Mart Stores, Inc. (NYSE:WMT) or Target Corporation (NYSE:TGT) alone anymore as a number of other middle-sized retail players are making their way into the industry. One such player is Dollar Tree, Inc. (NASDAQ:DLTR). It has outperformed the market quite a few times in past and committed to doing the same in future. Today DLTR has announced the financial results for Q2 2014 which certainly confirms the strong position of the company in US retail market in a long run.
Dollar Tree, Inc. (NASDAQ:DLTR) managed to attain a hefty figure of $2.03 billion consolidated net sales in Q2, which was 9.5% more than the $1.85 billion consolidated net sales of Q2 2013. When it comes to consolidated comparable store sales, the company managed to incline by 4.5% on the basis of constant currency. Even if the fluctuation in Canadian Currency is adjusted, the net incline in comparable store sales was recorded as 4.4% during the Q2 2014.
Profit Shows Decent Hike:
The gross profit of the company for the Q2 2014 was $694.1 million, 7.0% more than the $648.7 million profit of Q2 2013. Although Dollar Tree, Inc. (NASDAQ:DLTR) has reported a good hike in GP, but it is lesser in comparison to the sales. As a percentage of sales, it decreased by 34.2% or 80 basis points in comparison to last year’s figure. The main reason behind this negative performance was increased freight costs and investment in high-value products.
Selling, General & Administrative Expenses and additional costs:
Selling and general & administrative expenses remained 24.1%, similar to the Q2 2013. DLTR had to bear an additional acquisition-related cost of $7.5 million in Q2 2014 which occurred due to proposed merger with Family Dollar Stores.
Net income of Dollar Tree, Inc. (NASDAQ:DLTR) was $121.5 million, $3.2 million lesser than the net income figures of the previous year.