Dollar Tree's Huge Price Hike Could Be Hiding Deeper Problems

It is hard to knock Dollar Tree (NASDAQ: DLTR) for increasing sales by 6.5% in the first quarter, a period in which some of the industry's biggest names appeared to struggle. But the good news here just doesn't look quite so great when you step back and dig into the numbers a little bit.

Here's why you might want to take a more cautious approach with Dollar Tree right now.

When it comes to good news, it was Dollar Tree's namesake brand that garnered all of the attention. Sales in the first quarter for this business rose a hefty 11.2%. Those are comparable-store sales figures, so it's a pretty robust number given that it measures results for stores that were open for at least a year. Clearly, consumers are going to Dollar Tree and spending more.

Source Fool.com