🔹 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.”