$DLTR (-5,31%)

🔹 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 (-5,31%) | 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 (-4,96%) and $DLTR (-5,31%)

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

Dollar Tree $DLTR (-5,31%) 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.”

S&P500 Worst Performers September 2024 📉

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Quelle: https://x.com/bespokeinvest/status/1832113048045158634

$DLTR (-5,31%) | Dollar Tree Q2 Earnings Highlights:

🔹 Revenue: $7.37B (Est. $7.5B) 🔴; UP +0.7% YoY

🔹 Adj Diluted EPS: $0.67 (Est. $1.06) 🔴

🔹 Adjusted Net Income: $143.4M

FY2025 Guidance: 

🔹 Revenue: $30.6B - $30.9B (Est. $31.19B) 🔴

🔹 Adj Diluted EPS: $5.20 - $5.60 (Est. $6.55) 🔴

Key Metrics: 

🔹 Same-Store Net Sales Growth: Enterprise +0.7%, Dollar Tree +1.3%, Family Dollar -0.1%

🔹 Operating Income: $203.1M; DOWN -29.4% YoY

🔹 Adjusted Operating Income: $218.1M; DOWN -24.2% YoY

🔹 Gross Profit: $2.21B; UP +3.7% YoY

🔹 Gross Margin: 30.0%; UP 80 basis points

🔹 Selling, General, and Administrative Expenses: 27.3% of revenue (Q2 FY2023: 25.3%)

🔹 Cash Flow from Operations: $307M

🔹 Shares Repurchased: 0.75 million shares for $90.8M

Business Highlights: 

🔸 Opened 127 new Dollar Tree stores and 28 new Family Dollar stores.

🔸 Converted approximately 1,600 Dollar Tree stores to an in-line multi-price format.

🔸 Generated $307 million in net cash from operating activities.

🔸 Repurchased 0.75 million shares for $90.8 million.

CEO Rick Dreiling's Commentary: 

🔸 "We are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar, despite immense pressures from a challenging macro environment. Customers are responding favorably to initiatives like our expanded multi-price offering and we are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest in-line multi-price format."

CFO Jeff Davis' Insight: 

🔸 "Our adjusted EPS of $0.67 was $0.38 below the midpoint of our previous outlook range. While the vast majority of this variance was attributable to an adjustment of our general liability accrual, a portion was attributable to a comp shortfall which reflected the increasing effect of macro pressures on the purchasing behavior of Dollar Tree’s middle- and higher-income customers."

Strategic Updates: 

🔸 Ongoing review of strategic alternatives for the Family Dollar business segment, including potential sale, spin-off, or other disposition.

🔸 Implemented a comprehensive store portfolio optimization review, resulting in the closure of approximately 655 underperforming Family Dollar stores, with plans to close an additional 45 stores by the end of FY2024.

🔸 Tornado damage at the Marietta, Oklahoma distribution center led to $117M in losses, fully offset by insurance recoveries.

Revised FY2024 Outlook: 

🔸 The updated full-year guidance reflects Q2 results, a more conservative sales outlook, incremental conversion costs for recently acquired 99 Cents Only Stores leases, and higher depreciation and amortization expenses.