The increase added to an impressive run for shareholders this year, with Dollar Tree stock currently sitting at an over 35% gain compared to 18% for the market.
November's bounce was powered by healthy third-quarter earnings results and a brightening outlook for the retailer's holiday season. Comparable-store sales increased by 6.3% in the quarter to mark an acceleration over the prior quarter's 2.5% increase. Dollar Tree enjoyed faster growth in both its Dollar Tree and Family Dollar chains. Earnings also beat management's expectations as profit margin expanded.
Faster sales gains -- particularly in the context of rising prices -- give Dollar Tree good momentum heading into the fourth-quarter period that's responsible for an outsized portion of its profits each year. That's why CEO Gary Philbin and his executive team raised their full-year earnings outlook and now believe profits will come in between $4.64 per share and $4.73 per share, up from the prior forecast of between $4.44 per share and $4.60 per share. If it keeps up these market-thumping operating trends, the stock is likely to continue climbing.