1Sem.ยท

Dollar Tree Q4'24 Earnings & Strategic Update

$DLTR (-8,31ย %)


๐Ÿ”น Adj. EPS: $2.29 ($0.18 from discontinued ops)

๐Ÿ”น Rev (Cont. Ops): $5.0B (Est. $8B) ๐Ÿ”ด (+0.7% YoY)

๐Ÿ”น Same-Store Sales (Dollar Tree): +2.0% (Traffic +0.7%, Ticket +1.3%)


FY25 Outlook (Continuing Operations Only)

๐Ÿ”น Net Sales: $18.5B โ€“ $19.1B

๐Ÿ”น Adj. EPS: $5.00 โ€“ $5.50 (Est. $5.96) ๐Ÿ˜•

๐Ÿ”น Includes a $0.30โ€“$0.35 headwind from Family Dollar TSA timing


Q1 Guidance:

๐Ÿ”น Revenue: $4.5B โ€“ $4.6B

๐Ÿ”น Adj. EPS: $1.10 โ€“ $1.25 (Est. $1.46) ๐Ÿ˜•


Strategic Update:

๐Ÿ”น Family Dollar Sold to Brigade Capital & Macellum Capital for $1.007B

๐Ÿ”น Net proceeds estimated at $804M, with ~$350M in tax benefits from losses

๐Ÿ”น Spin-off to close by Q2 FY25, Family Dollar to remain in Chesapeake, VA

๐Ÿ”น Reported as discontinued operations effective Q4 FY24


Q4 Segment Metrics

๐Ÿ”น Gross Profit: $1.9B (โ†“2.8% YoY); Margin: 37.6% (โ†“130bps)

๐Ÿ”น Operating Income: $534M (โ†“26.5%); Adj. Op Income: $628M (โ†“15.2%)

๐Ÿ”น Adj. Op Margin: 12.6% (โ†“230bps)

๐Ÿ”น SG&A: 27.0% of revenue (โ†‘260bps); adj SG&A: 25.1%

๐Ÿ”น Adj. Effective Tax Rate: 24.8% (vs. 23.8% YoY)


Capital Allocation & Liquidity

๐Ÿ”น Repurchased 3.3M shares for $403.6M in FY24

๐Ÿ”น Cash & equivalents: $1.3B

๐Ÿ”น No revolver borrowings or commercial paper outstanding

๐Ÿ”น New $1.5B Revolver + $1.0B 364-Day Facility secured in March 2025


Management Commentary

โ€œWe finished 2024 on a high note with strong execution at Dollar Treeโ€ฆ With the sale of Family Dollar, we can fully dedicate ourselves to Dollar Treeโ€™s long-term growth, profitability, and returns on capital.โ€

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