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Dollar Tree profit surges 20%

Chesapeake, Va. -- Dollar Tree's fiscal fourth-quarter earnings rose 20.4% to $162.5 million amid rising sales and widening margins.

Net sales for the quarter, which ended Jan. 30, increased 10.7% to $1.73 billion . Same-store sales were up 3.9%.

The company's top-performing categories in the quarter included food, party supplies, health and beauty care, and housewares and home products.

Dollar Tree said it plans to increase capital spending in 2011 to $215 million to $225 million, up from $178.7 million last year. Capital projects include 300 new Dollar Tree stores and 75 relocations and expansions; 35 new Deal$ locations and  approximately 17 Dollar Giant stores in Canada.

The company will also expand its distribution center in Sylvania, Ga., from 600,000 sq. ft. to one million sq. ft.

For the fiscal year, Dollar Tree’s net income grew 24% to $397.3 million. Sales were up 12.4% to $5.9 billion. Same-store sales rose 6.3%.

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