$DLTR (-0.66%)

🔹 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 (-0.66%)

🔹 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 (-0.66%) | 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 (-0.06%) and $DLTR (-0.66%)

https://youtube.com/watch?v=MUJ-u7kpwoM&feature=shared

Dollar Tree $DLTR (-0.66%) CEO Rick Dreiling steps down as Chairman and CEO due to health concerns. COO Michael Creedon Jr. steps in as interim CEO, while Edward Kelly becomes Chairman. The company remains on track with its Q3 guidance, noting that same-store sales have “tracked well” and expressing optimism for the upcoming holiday season.

Dollar Tree also reports strong progress on its strategic review of Family Dollar, exploring options like a sale or spin-off. They aim to complete this process with ongoing input from advisors. Additionally, Dollar Tree's board is actively searching for a permanent CEO, considering both internal and external candidates.

Creedon, who joined Dollar Tree in 2022 and expanded his oversight this year, expressed confidence in the company’s current direction, stating, "We’re excited about our trajectory and committed to finding the best path for Family Dollar.”