Dollar Tree Q3 profit down

Chesapeake, Va. -- Dollar Tree Inc. reported that its net income in the third quarter fell 19%, impacted by a one -time gain a year related to selling its stake in the Ollie's Holdings chain. The company forecast results for the fourth quarter below Street expectations.

The company posted earnings of $125.4 million for the period ended Nov. 2, down from $155.4 million a year ago.

Revenue rose 9.5% to $1.88 billion. Analysts expected revenue of $1.91 billion.

Same-store sales were up 3%.

“During a very cautious consumer environment, comparable-store sales increased as the result of growth in both consumer basics and growth in seasonal and variety merchandise, with our higher margin variety categories growing at a faster pace,” said Bob Sasser, CEO, Dollar Tree. “Our comparable-store sales increase was driven principally by increased customer traffic, as new customers are finding Dollar Tree to be part of their solution to balance their household budgets."