What happened
Dollar Tree (DLTR 2.60%) shareholders beat a surging market in November as their stock rose 21% compared to the 11% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally put the retailer's shares back ahead of the wider market, up about 18% in 2020 through early December.
Image source: Getty Images.
So what
Investors were treated to some solid operating news from the value retailing chain, which late last month revealed that sales rose 7.5% in the third quarter thanks to growth in both its Family Dollar and Dollar Tree franchises. The company notched improving profitability, too, allowing earnings to jump 29%.
Now what
Due to fluid consumer shopping dynamics during the continuing pandemic, CEO Mike Witynski and his team declined to issue a detailed outlook for key holiday shopping period. Yet Dollar Tree said the fourth quarter was "off to a very good start," with sales gains accelerating as compared to the prior quarter.
That update suggests the chain will notch a record fiscal 2020, likely with significant sales growth and a rising operating margin that give management plenty of resources to direct toward extending its momentum into 2021.
