UPDATE 3-Dollar Tree posts higher profit, boosts forecast

* Q2 EPS $0.61 ex-items vs Wall St $0.54 view

* Sees FY EPS ex-items $2.97-$3.09 vs $2.97 view

* Says traffic and average purchase per visit rose

* Shares up 5.3 pct
(Adds CEO comment, sales forecasts, updates shares)

CHICAGO, Aug 19 (BestGrowthStock) – Dollar Tree Inc (DLTR.O: )
reported a higher-than-expected quarterly profit and raised its
full-year earnings forecast, as the retailer drew consumers
seeking low prices in a weak economy.

Shares of the company, which sells most of its goods for
$1, rose more than 5 percent. Dollar Tree said sales of food,
health and beauty products, and party supplies were
particularly strong during the quarter.

“Customers continue to shop in record numbers, and they’re
buying more when they visit,” Chief Executive Officer Bob
Sasser said on a call with analysts.

Sales at stores open at least a year, a key measure for
retailers, rose 6.7 percent. The company forecast increases in
the low- to mid-single-digit percentage range for this quarter
and fiscal year.

Sasser said Dollar Tree was not seeing cost pressures for
freight or wages overseas, although other retailers have cited
these as hurting results.

Earnings for the second quarter ended July 31 increased to
$78 million, or 61 cents a share, from $56.9 million, or 42
cents a share, a year earlier. Analysts on average had forecast
54 cents a share, according to Thomson Reuters I/B/E/S.

Net sales increased 12.7 percent to $1.38 billion, above
the $1.35 billion that analysts were expecting.

Dollar Tree forecast third-quarter sales of $1.35 billion
to $1.39 billion. It expects full-year sales of $5.77 billion
to $5.86 billion, above Wall Street expectations.

Dollar Tree said it now expected full-year earnings of
$2.97 to $3.09 per share, excluding items. Its previous outlook
was $2.86 to $3.00, and analysts were expecting $2.97.

During the quarter, Dollar Tree opened 56 new stores and
said it now expects 230 new locations to open this year. The
chain operates about 3,900 stores.

Shares of Dollar Tree were up 5.3 percent at $44.02 in
morning trading.
(Reporting by Emily Stephenson and Phil Wahba, editing by
Gerald E. McCormick and Lisa Von Ahn)

UPDATE 3-Dollar Tree posts higher profit, boosts forecast