- Same-Store Net Sales: Dollar Tree +1.8%; Family Dollar
+1.9%; Enterprise +1.8%
- Diluted Earnings per Share (EPS) of $1.08 and Adjusted
Diluted EPS of $1.12
- Fourth Quarter Fiscal 2024 Net Sales Outlook Range of $8.1
Billion to $8.3 Billion
- Fourth Quarter Fiscal 2024 Adjusted Diluted EPS Outlook
Range of $2.10 to $2.30
- Full-Year Fiscal 2024 Net Sales Outlook Range of $30.7
Billion to $30.9 Billion
- Full-Year Fiscal 2024 Adjusted Diluted EPS Outlook Range of
$5.31 to $5.51
- Family Dollar Review of Strategic Alternatives Remains on
Track
- Announces Chief Financial Officer Transition
Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial
results for its third quarter ended November 2, 2024.
“Our Dollar Tree and Family Dollar merchandising efforts
produced tangible results, and our third quarter sales came in at
the high-end of our expected range,” said Mike Creedon, Interim
Chief Executive Officer. “As an organization, our top priorities
remain accelerating the growth of the Dollar Tree segment,
completing the Family Dollar strategic review process, and
unlocking value for Dollar Tree shareholders.”
Dollar Tree, Inc. and Jeff Davis have agreed that he will step
down from his role as the Company’s Chief Financial Officer. The
company has launched an external search and to ensure a smooth
transition, Mr. Davis has agreed to remain with the company through
the filing of its fiscal 2024 Form 10-K.
“We thank Jeff for his service and appreciate the contributions
he made to the business during his time with Dollar Tree and Family
Dollar. We remain committed to our business strategy and are
focused on driving lasting value for our customers and
shareholders,” Creedon added.
Additional Business
Highlights
- Opened 249 new Dollar Tree and 6 new Family Dollar stores
- Approximately 2,300 Dollar Tree stores have been converted to
in-line multi-price format
- Generated $785.6 million of net cash provided by operating
activities
- Generated $359.2 million of free cash flow
Third Quarter 2024 Key
Operating Results (unaudited)
(Compared to same period fiscal 2023)
Q3 Fiscal 2024
Change
Consolidated Net Sales
$7.56B
3.5%
Same-Store Net Sales Growth:
Dollar Tree Segment
1.8%
Family Dollar Segment
1.9%
Enterprise
1.8%
Operating Income
$333.4M
10.5%
Diluted EPS
$1.08
11.3%
Adjusted Operating Income1
$343.2M
13.8%
Adjusted Diluted EPS1
$1.12
15.5%
1
Adjustments are for costs related to store
closures and Family Dollar Strategic Review professional fees. See
“Reconciliation of Non-GAAP Financial Measures” below for detailed
schedules of these charges.
Third Quarter Results
Unless otherwise noted, all comparisons are to the prior year’s
third quarter, ended October 28, 2023.
Consolidated net sales increased 3.5% to $7.56 billion.
Enterprise same-store net sales increased 1.8%, driven by a 1.6%
increase in traffic and a 0.2% increase in average ticket. Dollar
Tree same-store net sales increased 1.8%, driven by a 1.5% increase
in traffic and a 0.3% increase in average ticket. Family Dollar’s
same-store net sales increased 1.9%, driven by a 1.8% increase in
traffic and a flat average ticket. Same-store net sales results for
the Family Dollar segment do not include any stores that were
closed during the third quarter as part of our previously announced
portfolio optimization.
Gross profit increased 7.6% to $2.34 billion and gross margin
expanded 120 basis points to 30.9%. Gross margin expansion was
driven primarily by lower freight costs and improved shrink results
in relation to accruals, partially offset by increased distribution
costs.
Selling, general and administrative expenses were 26.6% of total
revenue, compared to 25.7%. The increase was driven primarily by
higher depreciation expense from store investments, higher
professional fees related to the review of Family Dollar strategic
alternatives, temporary labor in the Dollar Tree segment to support
our multi-price rollout, higher utilities costs, and loss of
leverage from the low single-digit comparable store net sales
increase.
On a non-GAAP basis, which excludes costs associated with store
closings and costs associated with the strategic review, selling,
general and administrative expenses were 26.5% of total revenue,
compared to 25.7%.
Operating income increased 10.5% to $333.4 million and operating
margin expanded 30 basis points to 4.4%. Adjusted operating income
increased 13.8% to $343.2 million and adjusted operating margin
expanded 40 basis points to 4.5%.
The Company’s effective tax rate was 23.7% compared to 21.8%.
Adjusted effective tax rate was 23.8% compared to 21.8%.
Net income was $233.3 million and diluted earnings per share was
$1.08. Adjusted net income was $240.6 million and adjusted diluted
EPS was $1.12.
Year-to-Date Results
Unless otherwise noted, all comparisons are between the 39 weeks
ended November 2, 2024, and the 39 weeks ended October 28,
2023.
Consolidated net sales increased 2.8% to $22.6 billion.
Enterprise same-store sales increased 1.2%. Dollar Tree same-store
sales increased 1.6%, driven by a 1.9% increase in traffic,
partially offset by a 0.3% decline in average ticket. Family
Dollar’s same-store sales increased 0.6%, driven by a 1.2% increase
in traffic, partially offset by a 0.5% decline in average
ticket.
Gross profit increased 5.5% to $6.9 billion and gross margin
expanded 80 basis points to 30.6%.
Selling, general and administrative expenses were 26.4% of total
revenue, compared to 25.2%. On a non-GAAP basis, selling, general
and administrative expenses were 26.2% of total revenue, compared
to 25.1%.
Operating income decreased 5.2% to $957.1 million and operating
income margin decreased 40 basis points to 4.2%. Adjusted operating
income decreased 4.1% to $996.9 million and adjusted operating
income margin decreased 30 basis points to 4.4%.
The Company’s effective tax rate was 24.0% compared to 23.4%.
Adjusted effective tax rate was 24.1% compared to 23.1%.
Net income was $665.8 million and diluted EPS was $3.08.
Adjusted net income was $695.5 million and adjusted diluted EPS was
$3.22.
The Company repurchased 3.28 million shares for $403.6 million,
including applicable excise tax.
Strategic Alternatives Review
Update
The Company continues to reiterate its commitment to completing
its formal review of strategic alternatives for the Family Dollar
business segment, which could include among others, a potential
sale, spin-off, or other disposition of the business. The process
is moving forward as planned. There is no set deadline or
definitive timeline for the completion of the strategic
alternatives review process, and there can be no assurance that
this process will result in any transaction or particular
outcome.
Portfolio Optimization
Review
During the fourth quarter of fiscal 2023, we announced that we
had initiated a comprehensive store portfolio optimization review
which involved identifying stores for closure, relocation, or
re-bannering based on an evaluation of current market conditions
and individual store performance, among other factors. As a result
of the portfolio optimization review, we identified approximately
970 underperforming Family Dollar stores, including approximately
600 stores to be closed in the first half of fiscal 2024, and
approximately 370 stores to be closed at the end of each store's
current lease term. As of November 2, 2024, we have closed
approximately 670 stores identified under the portfolio
optimization review and expect to close an additional 25 during the
remainder of fiscal 2024.
Fiscal 2024 Outlook
The Company is updating its full-year fiscal 2024 consolidated
net sales outlook range to $30.7 billion to $30.9 billion. The
Company still expects to deliver comparable store net sales growth
in the low-single-digits for the enterprise and both the Dollar
Tree and Family Dollar segments.
Adjusted diluted EPS is expected to range from $5.31 to
$5.51.
Fourth Quarter 2024
Outlook
The Company expects consolidated net sales for the fourth
quarter will range from $8.1 billion to $8.3 billion, based on
comparable store net sales growth in the low-single-digits for the
enterprise and both the Dollar Tree and Family Dollar segments.
Adjusted diluted EPS for the fourth quarter 2024 is estimated to
be in the range of $2.10 to $2.30.
While share repurchases are not included in the outlook, the
Company has approximately $952 million remaining under its $2.5
billion share repurchase authorization as of November 2, 2024.
Conference Call
Information
On Wednesday, December 4, 2024, the Company will host a
conference call to discuss its earnings results at 8:00 a.m.
Eastern Time. The telephone number for the call is (877) 407-3943
or (201) 689-8855. A recorded version of the call will be available
for seven days after the call and may be accessed by dialing (877)
660-6853 or (201) 612-7415. The access code is 13750113. A webcast
of the call is also accessible through the Investor Relations
portion of the Company’s website.
Supplemental financial information for the third quarter is
available on the Investor Relations portion of the Company’s
website, at https://corporate.dollartree.com/investors.
Dollar Tree, a Fortune 200 Company, operated 16,590 stores
across 48 states and five Canadian provinces as of November 2,
2024. Stores operate under the brands of Dollar Tree, Family
Dollar, and Dollar Tree Canada. To learn more about the Company,
visit www.DollarTree.com.
Use of Non-GAAP Financial
Measures
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States
(“GAAP”). From time-to-time, the Company supplements the reporting
of its financial information determined under GAAP with certain
non-GAAP financial information. The non-GAAP financial measures we
have disclosed include adjusted selling, general and administrative
expenses; adjusted selling, general and administrative expense
rate; adjusted operating income (loss); adjusted operating income
(loss) margin; adjusted net income; adjusted diluted earnings per
share; adjusted effective tax rate; and free cash flow.
Reconciliations of the non-GAAP financial measures to the
corresponding amounts prepared in accordance with GAAP appears in
the tables under the heading “Reconciliation of Non-GAAP Financial
Measures” below. These tables provide additional information
regarding the adjusted measures.
A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release
contains "forward-looking statements" as that term is used in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by the fact that they address future
events, developments or results and do not relate strictly to
historical facts. Any statements contained in this press release
that are not statements of historical fact may be deemed to be
forward-looking statements. Forward-looking statements include,
without limitation, statements preceded by, followed by or
including words such as: “believe”, “anticipate”, “expect”,
“intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”,
“should”, “predict”, “possible”, “potential”, “continue”,
“strategy”, and similar expressions. For example, our
forward-looking statements include statements relating to our
business and financial outlook for fiscal 2024, including without
limitation our expectations regarding net sales, comparable store
sales and adjusted diluted earnings per share for the fourth fiscal
quarter and full fiscal year 2024, and various factors that are
expected to impact our quarterly and annual results of operations
for fiscal 2024; our plans and expectations regarding our
leadership team and our business, including the impact of various
initiatives, investments, and reviews on the company’s performance
and prospects for long-term growth; our plans to close, relocate or
re-banner stores as a result of our store portfolio optimization
review; the impacts of tornado damage to our Dollar Tree
distribution center in Marietta, Oklahoma, including expectations
regarding inventory and property damage, related losses, the
availability of insurance coverage and expected insurance
recoveries, changes within our supply chain network and our
customer shopping experience; and our other plans, objectives,
expectations (financial and otherwise) and intentions, including
our review of strategic alternatives at our Family Dollar segment.
These statements are subject to risks and uncertainties. For a
discussion of the risks, uncertainties and assumptions that could
affect our future events, developments or results, you should
carefully review the "Risk Factors," "Business" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections in our Annual Report on Form 10-K filed March
20, 2024, our Form 10-Q for the most recently ended fiscal quarter
and other filings we make from time to time with the Securities and
Exchange Commission. We are not obligated to release publicly any
revisions to any forward-looking statements contained in this press
release to reflect events or circumstances occurring after the date
of this report and you should not expect us to do so.
DOLLAR TREE, INC. Condensed Consolidated Income
Statements (In millions, except per share data)
(Unaudited) 13 Weeks Ended 39 Weeks
Ended November 2,2024 October 28,2023 November
2,2024 October 28,2023 Revenues Net sales
$
7,561.7
$
7,309.1
$
22,560.8
$
21,948.7
Other revenue
6.5
5.7
19.0
15.2
Total revenue
7,568.2
7,314.8
22,579.8
21,963.9
Expenses Cost of sales
5,224.3
5,136.1
15,661.2
15,410.6
Selling, general and administrative expenses
2,010.5
1,877.0
5,961.5
5,544.1
Operating income
333.4
301.7
957.1
1,009.2
Interest expense, net
27.5
30.4
80.8
80.5
Other expense, net
0.1
0.2
0.2
0.2
Income before income taxes
305.8
271.1
876.1
928.5
Provision for income taxes
72.5
59.1
210.3
217.1
Net income
$
233.3
$
212.0
$
665.8
$
711.4
Net earnings per share: Basic
$
1.09
$
0.97
$
3.08
$
3.23
Weighted average number of shares
215.0
218.9
215.9
220.0
Diluted
$
1.08
$
0.97
$
3.08
$
3.23
Weighted average number of shares
215.2
219.2
216.1
220.5
Selling, general and administrative expense rate
26.6
%
25.7
%
26.4
%
25.2
%
Operating income margin
4.4
%
4.1
%
4.2
%
4.6
%
Income before income taxes as percentage of total revenue
4.0
%
3.7
%
3.9
%
4.2
%
Effective tax rate
23.7
%
21.8
%
24.0
%
23.4
%
Net income margin
3.1
%
2.9
%
2.9
%
3.2
%
The selling, general and administrative expense rate, operating
income margin and net income margin are calculated by dividing the
applicable amount by total revenue.
DOLLAR TREE, INC.
Segment Information (In millions) (Unaudited)
13 Weeks Ended 39 Weeks Ended November 2,
2024 October 28, 2023 November 2, 2024 October
28, 2023 Net sales: Dollar Tree
$
4,338.0
$
4,003.8
$
12,569.1
$
11,808.9
Family Dollar
3,223.7
3,305.3
9,991.7
10,139.8
Total net sales
$
7,561.7
$
7,309.1
$
22,560.8
$
21,948.7
Gross profit: Dollar Tree
$
1,534.1
35.4
%
$
1,393.8
34.8
%
$
4,401.9
35.0
%
$
4,075.7
34.5
%
Family Dollar
803.3
24.9
%
779.2
23.6
%
2,497.7
25.0
%
2,462.4
24.3
%
Total gross profit
$
2,337.4
30.9
%
$
2,173.0
29.7
%
$
6,899.6
30.6
%
$
6,538.1
29.8
%
Operating income (loss): Dollar Tree
$
465.2
10.7
%
$
482.7
12.1
%
$
1,329.5
10.6
%
$
1,416.2
12.0
%
Family Dollar
1.6
-
(66.3
)
(2.0
%)
23.9
0.2
%
(45.7
)
(0.5
%)
Corporate, support and other
(133.4
)
(1.8
%)
(114.7
)
(1.6
%)
(396.3
)
(1.8
%)
(361.3
)
(1.6
%)
Total operating income
$
333.4
4.4
%
$
301.7
4.1
%
$
957.1
4.2
%
$
1,009.2
4.6
%
DOLLAR TREE, INC. Condensed Consolidated Balance
Sheets (In millions) (Unaudited)
November 2,2024 February 3,2024 October
28,2023 ASSETS Current Assets: Cash and cash equivalents
$
697.6
$
684.9
$
444.6
Merchandise inventories
5,535.1
5,112.8
5,515.1
Other current assets
398.8
335.0
342.4
Total current assets
6,631.5
6,132.7
6,302.1
Restricted cash
75.1
72.3
71.0
Property, plant and equipment, net
6,675.7
6,144.1
5,714.6
Operating lease right-of-use assets
6,721.3
6,488.3
6,767.9
Goodwill
912.8
913.8
1,981.9
Trade name intangible asset
2,150.0
2,150.0
3,100.0
Deferred tax asset
5.3
9.0
11.1
Other assets
161.1
113.3
82.6
Total assets $
23,332.8
$
22,023.5
$
24,031.2
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Short-term borrowings $
-
$
-
$
229.6
Current portion of long-term debt
1,000.0
-
-
Current portion of operating lease liabilities
1,539.5
1,513.0
1,493.7
Accounts payable
2,945.1
2,063.8
1,857.0
Income taxes payable
8.0
52.7
-
Other current liabilities
920.7
1,067.2
1,067.6
Total current liabilities
6,413.3
4,696.7
4,647.9
Long-term debt, net, excluding current portion
2,430.0
3,426.3
3,425.1
Operating lease liabilities, long-term
5,580.2
5,447.6
5,539.9
Deferred income taxes, net
964.5
841.1
1,165.3
Income taxes payable, long-term
21.3
22.0
19.7
Other liabilities
287.4
276.7
235.1
Total liabilities
15,696.7
14,710.4
15,033.0
Shareholders' equity
7,636.1
7,313.1
8,998.2
Total liabilities and shareholders' equity $
23,332.8
$
22,023.5
$
24,031.2
The February 3, 2024 information was derived from the
audited consolidated financial statements as of that date.
DOLLAR TREE, INC. Condensed Consolidated Statements of
Cash Flows (In millions) (Unaudited) 39
Weeks Ended November 2, 2024 October 28, 2023
Cash flows from operating activities: Net income
$
665.8
$
711.4
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation and amortization
736.7
614.8
Provision for deferred income taxes
126.8
63.1
Stock-based compensation expense
84.3
76.4
Impairments
1.2
2.4
Other non-cash adjustments to net income
8.3
44.7
Changes in operating assets and liabilities
165.1
(83.2
)
Total adjustments
1,122.4
718.2
Net cash provided by operating activities
1,788.2
1,429.6
Cash flows from investing activities: Capital expenditures
(1,399.3
)
(1,317.2
)
Proceeds from insurance recoveries
45.0
-
Payments for fixed asset disposition
(4.8
)
(5.1
)
Net cash used in investing activities
(1,359.1
)
(1,322.3
)
Cash flows from financing activities: Proceeds from
commercial paper notes
3,206.1
948.0
Repayments of commercial paper notes
(3,206.1
)
(718.9
)
Proceeds from stock issued pursuant to stock-based compensation
plans
7.7
7.6
Cash paid for taxes on exercises/vesting of stock-based
compensation
(20.6
)
(38.6
)
Payments for repurchase of stock
(400.0
)
(500.0
)
Net cash used in financing activities
(412.9
)
(301.9
)
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
(0.7
)
(1.1
)
Net increase (decrease) in cash, cash equivalents and restricted
cash
15.5
(195.7
)
Cash, cash equivalents and restricted cash at beginning of period
757.2
711.3
Cash, cash equivalents and restricted cash at end of period
$
772.7
$
515.6
DOLLAR TREE, INC. Segment Information
(Unaudited) 13 Weeks Ended November 2,
2024 October 28, 2023 Dollar Family
Dollar Family Tree Dollar Total
Tree Dollar Total Store Count:
Beginning
8,627
7,761
16,388
8,177
8,299
16,476
New stores
249
6
255
107
90
197
Re-bannered stores (a)
-
(4
)
(4
)
1
(9
)
(8
)
Closings
(8
)
(41
)
(49
)
(13
)
(30
)
(43
)
Ending
8,868
7,722
16,590
8,272
8,350
16,622
Selling Square Footage (in millions)
78.3
59.0
137.3
71.9
63.4
135.3
Growth Rate (Square Footage)
8.9
%
(6.9
%)
1.5
%
2.3
%
3.8
%
3.0
%
39 Weeks Ended November 2, 2024
October 28, 2023 Dollar Family Dollar
Family Tree Dollar Total Tree
Dollar Total Store Count: Beginning
8,415
8,359
16,774
8,134
8,206
16,340
New stores
492
75
567
187
235
422
Re-bannered stores (a)
8
(14
)
(6
)
5
(10
)
(5
)
Closings
(47
)
(698
)
(745
)
(54
)
(81
)
(135
)
Ending
8,868
7,722
16,590
8,272
8,350
16,622
Selling Square Footage (in millions)
78.3
59.0
137.3
71.9
63.4
135.3
Growth Rate (Square Footage)
8.9
%
(6.9
%)
1.5
%
2.3
%
3.8
%
3.0
%
(a) Stores are included as re-banners when they close or open,
respectively.
52 Weeks Ended November 2, 2024
October 28, 2023 Dollar Family Dollar
Family Tree Dollar Total Tree
Dollar Total Sales per Square Foot (b)
$
233
$
223
$
229
$
227
$
218
$
222
(b) Sales per square foot is calculated based on total net sales
for the reporting period divided by the average selling square
footage during the period.
DOLLAR TREE, INC.
Reconciliation of Non-GAAP Financial Measures (In
millions, except per share data) (Unaudited) From
time-to-time, the Company discloses certain financial measures not
derived in accordance with GAAP. These non-GAAP financial measures
should not be used as a substitute for GAAP financial measures, or
considered in isolation, for the purposes of analyzing operating
performance, financial position, liquidity, or cash flows. The
non-GAAP financial measures we have disclosed include adjusted
selling, general and administrative expenses; adjusted selling,
general and administrative expense rate; adjusted operating income
(loss); adjusted operating income (loss) margin; adjusted net
income; adjusted diluted earnings per share; adjusted effective tax
rate; and free cash flow. The Company believes providing additional
information in these non-GAAP measures that exclude the unusual
expenses described below is beneficial to the users of its
financial statements in evaluating the Company's current operating
results in relation to past periods. In addition, the Company's
debt covenants exclude the impact of certain unusual expenses. The
Company has included a reconciliation of these non-GAAP financial
measures to the most comparable GAAP measures in the following
tables. 1.) In the first quarter of fiscal 2023, the Company
recorded a $30.0 million charge to its legal reserve for West
Memphis-related matters. In the fourth quarter of fiscal 2023, an
additional $26.7 million charge was recorded to the legal reserve
for these matters. In the first quarter of fiscal 2024, the
existing reserve was reduced by $2.5 million based on updated
information. 2.) During the fourth quarter of fiscal 2023, we
announced that we had initiated a comprehensive store portfolio
optimization review which involved identifying stores for closure,
relocation or re-bannering based on an evaluation of current market
conditions and individual store performance, among other factors.
In connection with this portfolio optimization review, we closed
approximately 630 Family Dollar stores in the first three quarters
of fiscal 2024 and incurred more than $25 million of costs
including severance and retention expenses for impacted associates
and other related closure costs. This included the closure of
approximately 30 Family Dollar stores during the third quarter of
fiscal 2024 and more than $1 million of costs incurred. 3.) During
the first quarter of fiscal 2024, a tornado destroyed our Dollar
Tree distribution center in Marietta, Oklahoma ("DC 8"). We
incurred losses for damaged inventory and property and equipment,
which are fully insured and therefore not contemplated in the
non-GAAP adjustments below. In the second quarter of fiscal 2024,
we incurred $2.2 million of severance-related costs for employees
at DC 8. 4.) During the second quarter of fiscal 2024, we announced
that we had initiated a formal review of strategic alternatives for
the Family Dollar segment, which could include among others, a
potential sale, spin-off or other disposition of the business.
Since the second quarter of fiscal 2024, we incurred consulting and
other expenses totaling $14.5 million related to the strategic
review, including $8.3 million during the third quarter of fiscal
2024. In addition, the Company discloses free cash flow, a
non-GAAP financial measure that we calculate as net cash provided
by operating activities less capital expenditures. The Company
believes free cash flow is an important indicator of our liquidity
as it measures the amount of cash we generate from our business
operations. Free cash flow may not represent the amount of cash
flow available for general discretionary use, because it excludes
non-discretionary expenditures, such as mandatory debt repayments
and required settlements of recorded and/or contingent liabilities
not reflected in cash flow from operations. The Company has
included a reconciliation of free cash flow to the most comparable
GAAP measures in the following tables. A reconciliation of
the projected adjusted diluted EPS, which is a forward-looking
non-GAAP financial measure, to the most directly comparable GAAP
financial measure, is not provided because the company is unable to
provide such reconciliation without unreasonable effort. The
inability to provide a reconciliation is due to the uncertainty and
inherent difficulty predicting the occurrence, the financial impact
and the periods in which the non-GAAP adjustments may be
recognized. GAAP measures may include the impact of such items as
litigation reserves; restructuring charges; goodwill and intangible
asset impairments; natural disasters; our store portfolio
optimization review and strategic review of Family Dollar, and the
tax effect of all such items. Historically, the company has
excluded these items from non-GAAP financial measures. The company
currently expects to continue to exclude these items in future
disclosures of non-GAAP financial measures and may also exclude
other items that may arise (collectively, “non-GAAP adjustments”).
The decisions and events that typically lead to the recognition of
non-GAAP adjustments, such as a decision to exit part of the
business or reaching settlement of a legal dispute, are inherently
unpredictable as to if or when they may occur. For the same
reasons, the company is unable to address the probable significance
of the unavailable information, which could be material to future
results.
Reconciliation of Adjusted Selling, General and
Administrative Expenses 13 Weeks Ended 39 Weeks
Ended November 2,2024 October 28,2023 November
2,2024 October 28,2023 Selling, general and
administrative expenses (GAAP)
$
2,010.5
26.6
%
$
1,877.0
25.7
%
$
5,961.5
26.4
%
$
5,544.1
25.2
%
Deduct: Store Closure Costs
(1.5
)
-
-
-
(25.6
)
(0.1
%)
-
-
Add/Deduct: Legal Reserve
-
-
-
-
2.5
-
(30.0
)
(0.1
%)
Deduct: Strategic Review Costs
(8.3
)
(0.1
%)
-
-
(14.5
)
(0.1
%)
-
-
Deduct: Severance
-
-
-
-
(2.2
)
-
-
-
Total adjustments
(9.8
)
(0.1
%)
-
-
(39.8
)
(0.2
%)
(30.0
)
(0.1
%)
Adjusted selling, general and administrative expenses (Non-GAAP)
$
2,000.7
26.5
%
$
1,877.0
25.7
%
$
5,921.7
26.2
%
$
5,514.1
25.1
%
DOLLAR TREE, INC. Reconciliation of Non-GAAP
Financial Measures (In millions, except per share data)
(Unaudited) Reconciliation of Adjusted Selling,
General and Administrative Expenses - Dollar Tree Segment 13
Weeks Ended 39 Weeks Ended November 2,2024
October 28,2023 November 2,2024 October
28,2023 Selling, general and administrative expenses (GAAP)
$
1,069.0
24.6
%
$
911.1
22.8
%
$
3,072.5
24.4
%
$
2,659.5
22.5
%
Deduct: Severance
-
-
-
-
(2.2
)
-
-
-
Deduct: Strategic Review Costs
(1.2
)
-
-
-
(1.2
)
-
-
-
Total adjustments
(1.2
)
-
-
-
(3.4
)
-
-
-
Adjusted selling, general and administrative expenses (Non-GAAP)
$
1,067.8
24.6
%
$
911.1
22.8
%
$
3,069.1
24.4
%
$
2,659.5
22.5
%
Reconciliation of Adjusted Selling, General and
Administrative Expenses - Family Dollar Segment 13 Weeks
Ended 39 Weeks Ended November 2,2024 October
28,2023 November 2,2024 October 28,2023 Selling,
general and administrative expenses (GAAP)
$
805.0
24.9
%
$
848.3
25.6
%
$
2,483.2
24.8
%
$
2,515.5
24.8
%
Deduct: Store Closure Costs
(1.6
)
-
-
-
(23.2
)
(0.2
%)
-
-
Add/Deduct: Legal Reserve
-
-
-
-
2.5
-
(30.0
)
(0.3
%)
Deduct: Strategic Review Costs
(7.1
)
(0.2
%)
-
-
(13.3
)
(0.1
%)
-
-
Total adjustments
(8.7
)
(0.2
%)
-
-
(34.0
)
(0.3
%)
(30.0
)
(0.3
%)
Adjusted selling, general and administrative expenses (Non-GAAP)
$
796.3
24.7
%
$
848.3
25.6
%
$
2,449.2
24.5
%
$
2,485.5
24.5
%
DOLLAR TREE, INC. Reconciliation of Non-GAAP
Financial Measures (In millions, except per share data)
(Unaudited) Reconciliation of Adjusted Operating
Income 13 Weeks Ended 39 Weeks Ended November
2,2024 October 28,2023 November 2,2024 October
28,2023 Operating income (GAAP)
$
333.4
4.4
%
$
301.7
4.1
%
$
957.1
4.2
%
$
1,009.2
4.6
%
SG&A adjustments: Add: Store Closure Costs
1.5
-
-
-
25.6
0.1
%
-
-
Add/Deduct: Legal Reserve
-
-
-
-
(2.5
)
-
30.0
0.1
%
Add: Strategic Review Costs
8.3
0.1
%
-
-
14.5
0.1
%
-
-
Add: Severance
-
-
-
-
2.2
-
-
-
Total adjustments
9.8
0.1
%
-
-
39.8
0.2
%
30.0
0.1
%
Adjusted operating income (Non-GAAP)
$
343.2
4.5
%
$
301.7
4.1
%
$
996.9
4.4
%
$
1,039.2
4.7
%
Reconciliation of Adjusted Operating Income -Dollar Tree
Segment 13 Weeks Ended 39 Weeks Ended November
2,2024 October 28,2023 November 2,2024 October
28,2023 Operating income (GAAP)
$
465.2
10.7
%
$
482.7
12.1
%
$
1,329.5
10.6
%
$
1,416.2
12.0
%
SG&A adjustments: Add: Severance
-
-
-
-
2.2
-
-
-
Add: Strategic Review Costs
1.2
-
-
-
1.2
-
-
-
Total adjustments
1.2
-
-
-
3.4
-
-
-
Adjusted operating income (Non-GAAP)
$
466.4
10.7
%
$
482.7
12.1
%
$
1,332.9
10.6
%
$
1,416.2
12.0
%
Reconciliation of Adjusted Operating Income (Loss)
-Family Dollar Segment 13 Weeks Ended 39 Weeks
Ended November 2,2024 October 28,2023 November
2,2024 October 28,2023 Operating income (loss) (GAAP)
$
1.6
-
$
(66.3
)
(2.0
%)
$
23.9
0.2
%
$
(45.7
)
(0.5
%)
SG&A adjustments: Add: Store Closure Costs
1.6
-
-
-
23.2
0.2
%
-
-
Add/Deduct: Legal Reserve
-
-
-
-
(2.5
)
-
30.0
0.3
%
Add: Strategic Review Costs
7.1
0.2
%
-
-
13.3
0.1
%
-
-
Total adjustments
8.7
0.2
%
-
-
34.0
0.3
%
30.0
0.3
%
Adjusted operating income (loss)(Non-GAAP)
$
10.3
0.2
%
$
(66.3
)
(2.0
%)
$
57.9
0.5
%
$
(15.7
)
(0.2
%)
DOLLAR TREE, INC. Reconciliation of Non-GAAP
Financial Measures (In millions, except per share data)
(Unaudited) Reconciliation of Adjusted Net
Income 13 Weeks Ended 39 Weeks Ended November
2,2024 October 28,2023 November 2,2024 October
28,2023 Net income (GAAP)
$
233.3
$
212.0
$
665.8
$
711.4
SG&A adjustments: Add: Store Closure Costs
1.5
-
25.6
-
Add/Deduct: Legal Reserve
-
-
(2.5
)
30.0
Add: Strategic Review Costs
8.3
-
14.5
-
Add: Severance
-
-
2.2
-
Total adjustments
9.8
-
39.8
30.0
Provision for income taxes on adjustments
(2.5
)
-
(10.1
)
(3.9
)
Adjusted net income (Non-GAAP)
$
240.6
$
212.0
$
695.5
$
737.5
Reconciliation of Adjusted Diluted Earnings Per Share
13 Weeks Ended 39 Weeks Ended November 2,2024
October 28,2023 November 2,2024 October
28,2023 Diluted net income per share (GAAP)
$
1.08
$
0.97
$
3.08
$
3.23
SG&A adjustments: Add: Store Closure Costs
0.01
-
0.12
-
Add/Deduct: Legal Reserve
-
-
(0.01
)
0.14
Add: Strategic Review Costs
0.04
-
0.07
-
Add: Severance
-
-
0.01
-
Total adjustments
0.05
-
0.19
0.14
Provision for income taxes on adjustments
(0.01
)
-
(0.05
)
(0.02
)
Adjusted diluted net income per share (Non-GAAP)
$
1.12
$
0.97
$
3.22
$
3.35
Reconciliation of Adjusted Effective Tax Rate 13
Weeks Ended 39 Weeks Ended November 2,2024
October 28,2023 November 2,2024 October
28,2023 Effective tax rate (GAAP)
23.7
%
21.8
%
24.0
%
23.4
%
Add/Deduct: Tax impact of non-GAAP adjustments (c)
0.1
%
-
0.1
%
(0.3
%)
Adjusted effective tax rate (Non-GAAP)
23.8
%
21.8
%
24.1
%
23.1
%
(c) Adjustments related to the tax effect of non-GAAP
adjustments, which were determined based on the nature of the
underlying non-GAAP adjustments and their relevant tax rates.
DOLLAR TREE, INC. Reconciliation of Non-GAAP
Financial Measures (In millions, except per share data)
(Unaudited) Reconciliation of Net Cash Provided by
(Used in) Operating Activities to Free Cash Flow 13 Weeks
Ended 39 Weeks Ended November 2,2024 October
28,2023 November 2,2024 October 28,2023 Net cash
provided by (used in) operating activities (GAAP)
$
785.6
$
505.8
$
1,788.2
$
1,429.6
Deduct: Capital expenditures
(426.4
)
(541.4
)
(1,399.3
)
(1,317.2
)
Free cash flow (Non-GAAP)
$
359.2
$
(35.6
)
$
388.9
$
112.4
Net cash provided by (used in) investing activities (GAAP)
(d)
$
(409.1
)
$
(541.3
)
$
(1,359.1
)
$
(1,322.3
)
Net cash provided by (used in) financing activities (GAAP)
$
(248.0
)
$
(29.7
)
$
(412.9
)
$
(301.9
)
(d) Net cash provided by (used in) investing activities
includes capital expenditures, which is included in our computation
of free cash flow.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241204687113/en/
Dollar Tree, Inc. Robert A. LaFleur, 757-991-5645 Senior Vice
President, Investor Relations www.DollarTree.com DLTR-E
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