$DLTR (+0.47%)

🔹 Revenue: $4.60B (Est. $4.47B) 🟢; UP +12.3% YoY

🔹 Adj EPS: $0.77 (Est. $0.40) 🟢; includes ~$0.20 timing benefit from tariffs

Guidance (FY26):

🔹 Revenue: $19.3B–$19.5B (Est. $19.15B) 🟢

🔹 Adj EPS: $5.32–$5.72 (Est. $5.47) 🟡

🔹 Same-Store Sales Growth: 4%–6%

Other Q2 Metrics:

🔹 Same-Store Sales: +6.5% (Traffic +3.0%, Ticket +3.4%)

🔹 Operating Income: $231M (Adj: $236M); Margin 5.1% (Adj: 5.2%)

🔹 Net Income: $156M; Diluted EPS: $0.75

🔹 Gross Margin: 34.4% (UP +20 bps YoY)

Other Highlights:

🔹 Completed sale of Family Dollar (July 2025); now a Dollar Tree-only business

🔹 Repurchased >$1B shares YTD (11M shares; $938M + $71M post-Q2)

🔹 Opened 106 new stores; 585 stores converted to “3.0” multi-price format

🔹 Cash & Equivalents: $666M; $2.4B remaining repurchase authorization

🔹 Net cash from ops YTD: $639M; Free cash flow YTD: $145M

Management Commentary:

🔸 CEO Mike Creedon: “With Family Dollar sold, we are now fully focused on strengthening Dollar Tree. Strong sales, margin expansion, and share gains reinforce our unique positioning in a tougher consumer backdrop.”

🔸 Company flagged ~$0.20 EPS boost from tariff timing in Q2, expected to reverse in Q3.

$DLTR (+0.47%)

🔹 Adj. EPS: $1.26 (Est. $1.21) 🟢; +2.4% YoY

🔹 Revenue: $4.6B (Est. $4.72B) 🔴; +11.3% YoY

FY Guidance

🔹 Revenue: $18.5B–$19.1B (Est. $18.95B) 🟡

🔹 Adj. EPS: $5.15–$5.65 (Est. $5.21) 🟢

FY Guidance:

🔸 Same-store sales expected to grow 3%–5%

🔸 Assumes existing tariff levels remain unchanged

🔸 FY EPS will reflect full-year SG&A costs of Family Dollar support, but reimbursement will only be for H2 → ~$0.30–$0.35 drag on FY EPS

🔸 Second quarter EPS expected to be down 45–50% YoY due to timing of inputs, before re-acceleration in H2

Q1 Same-Store Sales (Dollar Tree Segment)

🔹 Same-Store Net Sales Growth: +5.4%

🔹 Traffic: +2.5%

🔹 Average Ticket: +2.8%

Other Key Metrics:

🔹 Adj Operating Income: $388M; +1.4% YoY

🔹 Gross Margin: 35.6%; +20bps YoY

🔹 Adj Operating Margin: 8.4%; -80bps YoY

🔹 Effective Tax Rate: 25.9% (vs. 24.6%)

🔹 Adjusted Effective Tax Rate: 26.1% (vs. 24.6%)

Strategic/Operational Metrics

🔹 New Stores Opened: 148

🔹 Stores Converted to Multi-Price Format: ~500

🔹 Operating Cash Flow (Continuing Ops): $379M

🔹 Free Cash Flow (Continuing Ops): $130M

🔹 Share Repurchases: $436.8M (5.9M shares); Additional $67.5M post quarter-end

🔹 Remaining Repurchase Authorization: $519.7M

🔹 Cash & Equivalents: $1.0B

🔹 No borrowings under revolvers or commercial paper at quarter-end

Family Dollar Sale (Discontinued Ops)

🔹 Agreed Sale Price: $1.007B

🔹 Expected Net Proceeds: ~$800M

🔹 Estimated Tax Benefit: ~$350M

🔹 Antitrust Approval: Received

🔹 Expected Close: Q2 FY2025

Management Commentary

🔸 CEO Mike Creedon:

"Our strong first quarter performance underscores the progress we’ve made against our strategic priorities... we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide."

$DLTR (+0.47%)

🔹 Adj. EPS: $2.29 ($0.18 from discontinued ops)

🔹 Rev (Cont. Ops): $5.0B (Est. $8B) 🔴 (+0.7% YoY)

🔹 Same-Store Sales (Dollar Tree): +2.0% (Traffic +0.7%, Ticket +1.3%)

FY25 Outlook (Continuing Operations Only)

🔹 Net Sales: $18.5B – $19.1B

🔹 Adj. EPS: $5.00 – $5.50 (Est. $5.96) 😕

🔹 Includes a $0.30–$0.35 headwind from Family Dollar TSA timing

Q1 Guidance:

🔹 Revenue: $4.5B – $4.6B

🔹 Adj. EPS: $1.10 – $1.25 (Est. $1.46) 😕

Strategic Update:

🔹 Family Dollar Sold to Brigade Capital & Macellum Capital for $1.007B

🔹 Net proceeds estimated at $804M, with ~$350M in tax benefits from losses

🔹 Spin-off to close by Q2 FY25, Family Dollar to remain in Chesapeake, VA

🔹 Reported as discontinued operations effective Q4 FY24

Q4 Segment Metrics

🔹 Gross Profit: $1.9B (↓2.8% YoY); Margin: 37.6% (↓130bps)

🔹 Operating Income: $534M (↓26.5%); Adj. Op Income: $628M (↓15.2%)

🔹 Adj. Op Margin: 12.6% (↓230bps)

🔹 SG&A: 27.0% of revenue (↑260bps); adj SG&A: 25.1%

🔹 Adj. Effective Tax Rate: 24.8% (vs. 23.8% YoY)

Capital Allocation & Liquidity

🔹 Repurchased 3.3M shares for $403.6M in FY24

🔹 Cash & equivalents: $1.3B

🔹 No revolver borrowings or commercial paper outstanding

🔹 New $1.5B Revolver + $1.0B 364-Day Facility secured in March 2025

Management Commentary

“We finished 2024 on a high note with strong execution at Dollar Tree… With the sale of Family Dollar, we can fully dedicate ourselves to Dollar Tree’s long-term growth, profitability, and returns on capital.”

$DLTR (+0.47%) | Dollar Tree Q3 Earnings Highlights:

🔹 Adj. EPS: $1.12 (Est. $1.07) 🟢

🔹 Revenue: $7.56B (Est. $7.45B) 🟢; UP +3.5% YoY

🔹 Operating Income: $333.4M (Est. $332.2M) 🟡; UP +10.5% YoY

🔹 Gross Margin: 30.9% (Est. 30.6%) 🟢; UP 120 basis points YoY

Q4 Guidance:

🔹 Revenue: $8.1B-$8.3B (Est. $8.24B) 🟡

🔹 Adjusted EPS: $2.10-$2.30 (Est. $2.23) 🟡

FY24 Guidance:

🔹 Revenue: $30.7B-$30.9B (Est. $30.69B) 🟡

🔹 Adjusted EPS: $5.31-$5.51 (Est. $5.41) 🟡

Q3 Same-Store Sales Growth:

🔹 Enterprise: +1.8% (Est. +1.3%) 🟢

🔹 Dollar Tree Segment: +1.8% (Est. +1.9%) 🟡

🔹 Family Dollar Segment: +1.9% (Est. +0.7%) 🟢

Q3 Segment Revenue:

🔹 Dollar Tree: $4.34B (Est. $4.26B) 🟢; UP +8.3% YoY

🔹 Family Dollar: $3.22B (Est. $3.19B) 🟢; DOWN -2.5% YoY

Business Metrics:

🔹 Total Locations: 16,590 (-0.2% YoY)

🔹 Dollar Tree Locations: 8,868 (+7.2% YoY)

🔹 Family Dollar Locations: 7,722 (-7.5% YoY)

🔹 Free Cash Flow: $359.2M

🔹 Net Cash from Operations: $785.6M

Operating Highlights:

🔹 Enterprise traffic grew by 1.6%, contributing to same-store sales growth.

🔹 Dollar Tree traffic grew by 1.5%, with a 0.3% increase in average ticket.

🔹 Family Dollar traffic grew by 1.8%, with a flat average ticket.

🔹 Gross margin improved primarily due to lower freight costs and better shrink results.

Strategic and Business Updates:

🔸 249 new Dollar Tree stores and 6 new Family Dollar stores opened in the quarter.

🔸 Approximately 2,300 Dollar Tree stores converted to multi-price formats.

🔸 Ongoing review of Family Dollar strategic alternatives, including potential sale or spin-off.

🔸 CFO transition announced; external search for a replacement underway.

About $DG (-1.07%) and $DLTR (+0.47%)

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