A man enters a Dollar Tree discount store in Garden City, New York, U.S., May 23, 2016.  REUTERS/Shannon Stapleton

A man enters a Dollar Tree discount store in Garden City, New York, U.S., May 23, 2016. REUTERS/Shannon Stapleton (Copyright Reuters 2016)

Dollar Tree's quarterly profit more than doubles

Markets Reuters

Dollar Tree Inc , the biggest U.S. dollar-store chain after its acquisition of Family Dollar in 2015, said quarterly profit more than doubled, helped by lower merchandise and freight costs.

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Dollar Tree said its net income rose to $171.6 million, or 72 cents per share, in the third quarter ended Oct. 29 from $81.9 million, or 35 cents per share, a year earlier.

The prior year's third quarter had included charges and markdowns on Family Dollar.

Net sales rose to $5.00 billion from $4.95 billion.

Dollar Tree completed the acquisition of Family Dollar in July last year, meaning the latest quarter is the first in which there is a true year-on-year comparison of combined company's performance.

The company's shares up 5.5 percent in premarket trading on Tuesday.

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(Reporting by Sruthi Ramakrishnan in Bengaluru, Editing by Anil D'Silva)