Slide 1: Supplemental Financial Presentation 4th Quarter 2023
Supplemental Financial Presentation 4th Quarter 2023
Slide 2: Forward-looking Statements
Forward-looking Statements This Supplemental Financial Presentation contains “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995, concerning our business and outlook, including our expected sales, comparable store sales, selling square footage g
Slide 3: Comparable Store Sales Composition
Comparable Store Sales Composition Traffic, Average Ticket, Consumables, and Discretionary1 FISCAL 2022 FISCAL 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY TOTAL 11.2% 7.5% 8.5% 8.7% 9.0% 3.4% 7.8% 5.4% 6.3% 5.8% Customer Traffic (3.6%) (5.8%) (5.2%) (1.1%) (3.9%) 5.5% 9.6% 7.0% 7.1% 7.4% Average Ticket 15.4%
Slide 4: Dollar Tree Consumables vs. Discretionary Mix Shift Over Time
Dollar Tree Consumables vs. Discretionary Mix Shift Over Time YOY Consumables Mix Shift -90 -280 -20 +180 +170 +220 +210 +190 bps bps bps bps bps bps bps bps 45.5% 46.2% 46.8% 46.2% 42.5% 45.3% 44.6% 47.2% 49.2% 48.3% 48.0% 48.5% 48.4% 54.5% 53.8% 53.2% 53.8% 57.5% 54.7% 55.4% 52.8% 50.8% 51.7% 52.0
Slide 5: Family Dollar Consumables vs. Discretionary Mix Shift Over Time
Family Dollar Consumables vs. Discretionary Mix Shift Over Time YOY Consumables Mix Shift -100 -20 +140 +200 +230 +290 +290 +260 bps bps bps bps bps bps bps bps 77.5% 76.5% 76.3% 78.1% 77.3% 79.1% 76.6% 77.7% 80.1% 79.6% 79.5% 80.3% 82.0% 22.5% 23.5% 23.7% 21.9% 22.7% 20.9% 23.4% 22.3% 19.9% 20.4% 2
Slide 6: Family Dollar Taking Consumables Market Share
Family Dollar Taking Consumables Market Share % Change vs. Last Year Market FD 11.1% 11.3% 11.4% 10.6% 10.7% 9.7% 8.8% 8.9% 7.5% $ Sales 6.3% 6.9% Volume 3.5% 4.8% 3.9% 2.5% 1.2% 2.7% 1.5% 1.2% 0.8% Unit -1.2% -0.8% -1.7% -2.2% -1.9% -2.1% -1.8% -2.6% Volume -4.3% -6.3% -5.8% -8.1% Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Dollar Tree Taking Consumables Market Share
Dollar Tree Taking Consumables Market Share % Change vs. Last Year Market DT 11.8% 12.1% 10.7% 11.3% 10.5%10.2% 9.6% 9.7% 9.2% 9.4% 8.2% 8.7% $ Sales 7.2% Volume 4.8% 2.2% 1.1% 8.4% 8.0% 6.4% 3.6% Unit Volume -1.5% -2.1% -2.6% -2.6% -2.8% -3.0% -2.5% -3.3% -7.2% -9.5% -11.3% -11.2% Q1 Q2 Q3 Q4 Q1 Q2
Slide 8: Sales per Square Foot by Segment
Sales per Square Foot by Segment $234 $234 $220 $200 $201 $203 $227 $225 $221 FY 19 FY 20 FY 21 FY 22 FY 23 $220 Dollar Tree $216 $220 $218 $218 $212 $216 $210 $214 $214 $212 $214 $220 $211 $210 $191 $209 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY 19 FY 20 FY 21 FY 22 FY 23 Family Dollar Dollar Tree
Slide 9: Operating Margin (GAAP) - Dollar Tree
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2023 Q4 Trend Drivers Q1 Q2 Q3 Q4 FY Prior Year - GAAP 20.2% 15.4% 13.3% 16.8% 16.5% ↑ Lower freight costs COGS Merchandise Cost1 (420) (275) 55 230 (85) ↓ Product cost inflation, unfavorable product mix COGS Occupancy 5 35 15 60 30 ↑ Sale
Slide 10: Operating Margin (GAAP) - Family Dollar
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2023 Q4 Trend Drivers Q1 Q2 Q3 Q4 FY Prior Year - GAAP 2.9% 1.7% (0.6%) 0.0% 1.0% ↑ Lower freight cost, higher allowances COGS Merchandise Cost1 (85) 5 140 50 30 ↓ Product cost inflation, unfavorable product mix COGS Occupancy 40 15 0 45 2
Slide 11: Adjusted Operating Margin (Non-GAAP) - Dollar Tree
Adjusted Operating Margin (Non-GAAP) Year-Over-Year Basis Point Change FY 2023 Q4 Trend Drivers Q1 Q2 Q3 Q4 FY Prior Year - GAAP 20.2% 15.4% 13.3% 16.8% 16.5% ↑ Lower freight costs COGS Merchandise Cost1 (420) (275) 55 230 (85) ↓ Product cost inflation, unfavorable product mix COGS Occupancy 5 35 15
Slide 12: Adjusted Operating Margin (Non-GAAP) - Family Dollar
Adjusted Operating Margin (Non-GAAP) Year-Over-Year Basis Point Change FY 2023 Q4 Trend Drivers Q1 Q2 Q3 Q4 FY Prior Year - GAAP 2.9% 1.7% (0.6%) 0.0% 1.0% 1 ↑ Lower freight cost, higher allowances COGS Merchandise Cost (85) 5 140 50 30 ↓ Product cost inflation, unfavorable product mix COGS Occupanc
Slide 13: Fiscal 2023 New Store Growth
Fiscal 2023 New Store Growth Back-End Weighted 219 197 73 90 127 123 112 118 107 102 Full-Year 70 95 70 89 75 146 2022 2023 79 107 333 308 48 131 333 42 32 32 34 23 464 641 2022 2023 2022 2023 2022 2023 2022 2023 1Q 2Q 3Q 4Q Dollar Tree Family Dollar 13
Slide 14: 2024 Import Routing Scenarios
2024 Import Routing Scenarios by Port of Entry West Coast: Eastbound cargo arriving at ports on the West Coast of the United States. We take possession of the containers when they arrive at the port. East Coast: Cargo arriving at ports on the East Coast or Gulf Coast of the United States consisting
Slide 15: Projected 2024 Import Volume by Type of Contract
Projected 2024 Import Volume by Type of Contract One-Year Contracts These annual contracts are typically negotiated in March and April and Spot go into effect at the beginning of May and run through April of the Rates following year. As such, ocean freight costs in any given fiscal year 5% under the
Slide 16: Progress Report: Initiatives Outlined at June 2023 Investor Day
Progress Report Initiatives Outlined at June 2023 Investor Day Area Initiative Progress Family Dollar • Reset Stores Planogram resets and 78" shelf profile completed in Q4 2023 • Emerging Formats 1,895 H2.5, XSB, and larger rural format stores as of Q4 2023 • Renovations Completed 1,051 renova
Slide 17: Progress Report - continued
Progress Report - continued Initiatives Outlined at June 2023 Investor Day Area Initiative Progress Operations • Employee Turnover Reduced DM, SM, and ASM turnover by 20% or more in FY 2023 • Attract Talent Increased candiate flow 36% in stores, 24% in DCs, and 20% at HQ • Develop Talent Build
Slide 18: Updated Outlook: First Quarter and Full-Year Fiscal 2024
Updated Outlook First Quarter and Full-Year Fiscal 2024 First Quarter Fiscal Year Sales - Enterprise $7.6B - $7.9B $31.0B - $32.0B Comparable Sales - Dollar Tree LSD-MSD MSD Comparable Sales - Family Dollar "approximately flat" LSD Comparable Sales - Enterprise LSD-MSD LSD-MSD New Store Openings - 6
Slide 19: Updated Outlook: Full-Year Fiscal 2024
Updated Outlook Full-Year Fiscal 2024 Underlying Factors Impacting FY 2024 Outlook Fiscal Year 2024 is a 52-week year and ends February 1, 2025 Gross Margins • Expect full-year gross margin of approximately 36.0% to 36.5% in the Dollar Tree segment • Expect full-year gross margin of approximatel
Slide 20: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 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 o
Slide 21: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures DOLLAR TREE, INC. Reconciliation of Non-GAAP Financial Measures (In millions, except per share data) (Unaudited) Reconciliation of Adjusted Operating Income - Dollar Tree Segment 14 Weeks Ended 13 Weeks Ended 53 Weeks Ended 52 Weeks Ended February 3, 2024 Januar