This post was originally published on this site
Investing.com — Dollar Tree (NASDAQ:DLTR) rose 12% as we spend, spend, spend.
Earnings per share of $1.39 compared to the estimated $1.15 on sales of $6.18 billion, higher than the expected $6.12 billion. Fourth quarter sales are already ahead of the previous quarter.
“Dollar Tree delivered its strongest same-store sales performance in the past ten quarters,” said Chief Executive Officer Mike Witynski in a statement. “We are just over three weeks into our important fourth quarter and we are off to a very good start, with same-store sales at both banners currently tracking above reported third quarter levels,” Witynski said.
Consolidated net sales increased 7.5% to $6.18 billion from $5.75 billion from a year earlier, with gross profit up 13% to $1.92 billion. Shares are trading close to a one-year high.
We also spent at Best Buy, but investors don’t seem to be nearly as excited. Shares are down 6% despite an easy beat, with earnings per share of $2.06 versus $1.70 on sales of $11.85 billion compared to $10.97 billion.
“Today, we are once again reporting strong quarterly results in the midst of unprecedented times,” said Corie Barry, Best Buy CEO.
“Our comparable sales grew a remarkable 23%,” Barry said in a statement. “From a profitability standpoint, our better-than-expected sales resulted in significant operating income rate expansion and earnings growth.”
Investors may not like that Best Buy said it raised its starting wage to $15 an hour, paid out bonuses and reinstated short-term incentive compensation. Also, as with all things these days, Best Buy admitted uncertainty ahead and declined to provide guidance.
“While the demand for the products and services we sell remains at elevated levels as we start the fourth quarter, it is very difficult for us to predict how sustainable these trends will be due to the significant uncertainty related to the various impacts of the pandemic,” said Chief Financial Officer Matt Bilunas.
