Slide 1: Supplemental Financial Presentation 2nd Quarter 2024
Supplemental Financial Presentation 2nd Quarter 2024
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, new store openings, depr
Slide 3: Key Takeaways Second Quarter 2024
KEY TAKEAWAYS Second Quarter 2024 Adjusted diluted EPS was $0.67, includes $0.30 negative impact from general liability accrual Gross Margins o Expanded 80 bps at Dollar Tree and 50 bps at Family Dollar o SNAP and Shrink headwinds are beginning to moderate Comp Growth o 0.7% Enterprise || 1.3%
Slide 4: Comparable Store Sales Composition
Comparable Store Sales Composition Traffic, Average Ticket, Consumables, and Discretionary1 FISCAL 2023 FISCAL 2024 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD TOTAL 3.4% 7.8% 5.4% 6.3% 5.8% 1.7% 1.3% - - 1.5% Customer Traffic 5.5% 9.6% 7.0% 7.1% 7.4% 2.8% 1.4% - - 2.1% Average Ticket (2.1%) (1.6%) (1.5%) (0.7%
Slide 5: Dollar Tree Consumables vs. Discretionary Mix Shift Over Time
Dollar Tree Consumables vs. Discretionary Mix Shift Over Time Quarterly Results Annual Results YOY Consumables Mix Shift +180 +170 +220 +210 +220 +210 -90 -280 -20 +190 +210 bps bps bps bps bps bps bps bps bps bps bps 48.0% 48.5% 48.4% 44.6% 48.3% 45.5% 45.3% 47.2% 50.2% 50.6% 49.2% 50.4% 52.0% 51.5
Slide 6: Family Dollar Consumables vs. Discretionary Mix Shift Over Time
Family Dollar Consumables vs. Discretionary Mix Shift Over Time Quarterly Results Annual Results YOY Consumables Mix Shift +200 +230 +290 +290 +70 +60 -100 -20 +140 +260 +70 bps bps bps bps bps bps bps bps bps bps bps 80.1% 79.6% 82.0% 79.5% 80.8% 80.2% 77.5% 76.5% 76.3% 77.7% 80.3% 80.5% 19.9% 20.4
Slide 7: Dollar Tree Consumables Market Share
Dollar Tree Consumables Market Share % Change vs. Last Year Market DT 12.1% 8.7% 9.2% 9.4% 7.2% 7.9% 4.8% 3.5% $ Sales 2.2% 1.3% 2.2% 1.1% Volume 8.4% 8.0% 6.4% 4.7% 3.6% Unit 0.7% 0.8% Volume -0.5% -1.5% -2.8% -3.0% -2.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2023 FY 2024 Source: Nielsen Market Data in compet
Slide 8: Family Dollar Consumables Market Share
Family Dollar Consumables Market Share % Change vs. Last Year Market FD 11.4% 10.7% 8.9% 7.5% $ Sales Volume 4.8% 3.9% 3.8% 2.5% 2.0% 2.1% 2.0% 1.2% 2.7% 1.5% 1.3% 1.2% 0.8% 0.9% 0.9% 0.5% Unit Volume -0.8% -1.8% -2.1% -2.6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2023 FY 2024 Source: Nielsen Market Data in comp
Slide 9: Sales per Square Foot by Business Segment
Sales per Square Foot by Business Segment $234 $220 $200 $201 $203 $235 $235 $234 $227 $225 FY 19 FY 20 FY 21 FY 22 FY 23 $221 $225 Dollar Tree $220 $227 $216 $220 $218 $218 $212 $216 $210 $214 $214 $214 $220 $212 $211 $191 $210 $209 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 FY 19 FY 20 FY 2
Slide 10: Operating Margin (GAAP) - Dollar Tree
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2024 Q2 Trend Drivers Q1 Q2 Prior Year - GAAP 13.6% 10.3% ↑ Lower freight costs Cost of sales 10 80 ↓ Increased sales of higher cost consumables merchandise ↓ Higher occupancy costs due to loss of leverage from low-single-digit comp ↓ Unfa
Slide 11: Operating Margin (Non-GAAP) - Dollar Tree
Operating Margin (Non-GAAP) Year-Over-Year Basis Point Change FY 2024 Q2 Trend Drivers Q1 Q2 Prior Year - Non-GAAP 13.6% 10.3% ↑ Lower freight costs Cost of sales 10 80 ↓ Increased sales of higher cost consumables merchandise ↓ Higher occupancy costs due to loss of leverage from low-single-digit com
Slide 12: Operating Margin (GAAP) - Family Dollar
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2024 Q2 Trend Drivers Q1 Q2 Prior Year - GAAP 0.3% 0.3% ↑ Lower freight costs ↑ Lower occupancy costs resulting from stores closed in portfolio optimization Cost of sales 40 50 ↓ Increased sales of higher cost consumable merchandise ↓ High
Slide 13: Operating Margin (Non-GAAP) - Family Dollar
Operating Margin (Non-GAAP) Year-Over-Year Basis Point Change FY 2024 Q2 Trend Drivers Q2 Q2 Prior Year - Non-GAAP 1.2% 0.3% ↑ Lower freight costs ↑ Lower occupancy costs resulting from stores closed in portfolio optimization Cost of sales 40 50 ↓ Increased sales of higher cost consumable merchandis
Slide 14: Fiscal 2024 New Store Openings
Fiscal 2024 New Store Openings Pivot to Dollar Tree 200 180 157 155 160 140 41 28 118 120 107 100 80 70 75 Year-to-Date 60 127 116 2023 2024 40 145 69 20 48 80 243 32 225 312 0 0 0 0 0 2023 2024 2023 2024 2023 2024 2023 2024 1Q 2Q 3Q 4Q Dollar Tree Family Dollar 14
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: Updated Outlook: Third Quarter and Full-Year Fiscal 2024
Updated Outlook Third Quarter and Full-Year Fiscal 2024 Third Quarter Fiscal Year Sales - Enterprise $7.4B - $7.6B $30.6B - $30.9B Comparable Sales - Dollar Tree LSD LSD Comparable Sales - Family Dollar LSD LSD Comparable Sales - Enterprise LSD LSD New Store Openings - 600-650 Depreciation - ~$1.0B
Slide 17: Outlook Details: Full-Year Fiscal 2024
Outlook Details 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% in the Dollar Tree segment • Expect full-year gross margin of approximately 25.0% i
Slide 18: 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 19: Appendix: Reconciliation of Adjusted Operating Income
Appendix: Non-GAAP Financial Measures Reconciliation of Adjusted Operating Income - Dollar Tree Segment 13 Weeks Ended 26 Weeks Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Operating income (GAAP) $ 342.0 8.4% $ 397.8 10.3% $ 864.3 10.5% $ 933.5 12.0% SG&A adjustments: Add: Severa
Slide 20: Appendix: Reconciliation of Adjusted Diluted Earnings Per Share
Appendix: Non-GAAP Financial Measures Reconciliation of Adjusted Diluted Earnings Per Share 13 Weeks Ended 26 Weeks Ended August 3, July 29, August 3, July 29, 2024 2023 2024 2023 Diluted net income per share (GAAP) $ 0.62 $ 0.91 $ 2.00 $ 2.26 SG&A adjustments: Add: Store Closure Costs 0.03 - 0.11 -