By Senad Karaahmetovic

Dollar Tree (NASDAQ 🙂 has reported Q1 comparable sales that were better than expected, sending shares of the company up in premarket trades.

DLTR reported a Q1 enterprise comparable sales growth of 4.4%, topping the expected growth of 2.14%. Consolidated was $6.9B, which is 6.5% higher YoY than the analysts consensus of $6.77B.

Dollar Tree had net sales of $3.2 billion more than the consensus analyst estimate. Analysts were expecting $3.2 billion, but the company’s Family Dollar net sales totaled $3.12 Billion.

The consensus estimate for Q2 is $1.73/share. DLTR expects an EPS range of $1.45-1.55. DLTR anticipates Q2 net revenues in the range $6.65 billion-$6.78 billion, compared against the $6.75 million consensus estimate by analysts.

DLTR projects EPS to range from $7.80-8.20 on a year-round basis. This is an improvement from the previous range (7.60-8.8) and compared with the current $8 per share.

Analysts had expected $27.95 billion. The firm expects FY net revenues to be between $27.76 and $28.14 trillion.

“We believe now is the ideal time to accelerate investments focused on driving growth through improved associate and shopper experience, while propelling greater efficiencies,” the company said.

Citi analyst Paul Lejuez said DLTR delivered “a very solid quarter” after the company made “a quick move in the right direction.”

“Results were strong and guidance indicates the momentum continues. Mgmt announced that it would make strategic investments. This should be seen as a positive sign, since it offers the chance to improve and reduce the gap with peers. We expect shares to trade higher,” the analyst said.

Joseph Feldman, analyst at Telsey Advisory Group, also expressed positive views.

“Overall, Dollar Tree executed well in 1Q22, and the price increase at core Dollar Tree is fueling results and the raised 2022 guidance. The company remains well-positioned to gain market share, given its convenient locations, value merchandise, and transformative initiatives.”