Dollar Tree’s board of directors have authorized an additional $1.5 billion stock repurchase program. The operator of chain discount stores offering most items under a dollar said on Friday that the increased buyback deal reflects its “commitment to build value for long-term shareholders” as well as its confidence in the future.
“The Chesapeake, Va. based company has bought back more than $1.9 billion of its shares since 2003, including $414.7 million in 2010 and $345.9 million so far this year.
Dollar Tree (NASDAQ:DLTR) is a Fortune 500 company operating 4,009 store throughout the Unites States. Its stores are supported by nine distribution centers. The company operates stores under the names of Dollar Tree, Dollar Bills, and a variety chain under the name of Deal$.
“Dollar Tree continues to demonstrate the ability to self-fund growth while generating substantial free cash,” said President and Chief Executive Bob Sasser. The company currently has a market capitalization of $9.33 billion.
An increased number of companies have been rolling out plans to repurchase stock as financial markets remain volatile on concerns about the global economy and debt issues in the U.S. and Europe. An uncertain economic environment has benefited Dollar Tree as cautious consumers seek value offerings.
Second-quarter earnings from the company jumped 22% on sales growth from both basic and discretionary products. Shares in Dollar Tree closed Thursday at $76.45 and were inactive during pre-market hours. The stock is up 36% since the start of the year.