Slide 1: Supplemental Financial Presentation 3rd Quarter 2022
Supplemental Financial Presentation 3rd Quarter 2022 1
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 the company’s sales, comparable store sales, selling square footage, depreciation, net interest expense,
Slide 3: Store Count by Format (Dollar Tree)
STORE COUNT BY FORMAT 7,984 8,114 460 2,350 7,524 5,764 3Q21 3Q22 Traditional DT Plus Traditional: Dollar Tree stores primarily at fixed price-point of $1.25 per item DT Plus: Dollar Tree stores that include $3 and $5 Plus merchandise in assortment 3
Slide 4: Store Count by Format (Family Dollar)
STORE COUNT BY FORMAT 7,982 8,179 155 700 3,750 4,300 4,077 3,179 3Q21 3Q22 Traditional H2/Renovated Combo Traditional: Original Family Dollar store format H2/Renovated: Store with improved merchandise offerings and a minimum of freezer & cooler door Combo: Family Dollar store that includes select D
Slide 5: Category Mix
CATEGORY MIX Category % of Net Sales 21.3% 20.9% 54.3% 53.8% 78.7% +40 bps 79.1% 45.7% +50 bps 46.2% 3Q21 3Q22 3Q21 3Q22 Consumables Discretionary Consumables Discretionary Discretionary Categories Discretionary Categories Seasonal & Variety Home, Apparel, Accessories, Seasonal, Electronics 5
Slide 6: Comparable Store Sales Composition
COMPARABLE STORE SALES COMPOSITION Consumables & Discretionary Traffic & Average Ticket FISCAL 2021 FISCAL 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TOTAL 4.7% (0.2%) 0.6% 3.1% 11.2% 7.5% 8.5% Consumables (9.3%) (2.8%) (2.6%) (0.1%) 8.0% 7.9% 9.3% Discretionary 19.2% 2.0% 3.2% 5.4% 14.1% 6.7% 8.1% Traffic (4.4%) 1.
Slide 7: Operating Income Margin
OPERATING INCOME MARGIN Basis Point Change Year-over-Year Q1 Q2 Q3 Q3 Trend Driver Prior Year 12.1% 10.1% 8.5% Higher Initial Mark-on ($1.25 | DT Plus) Cost of Sales Merchandise Cost 590 455 485 Category & Product Mix Cost of Sales Markdowns (30) (5) (10) Substituted Products Cost of Sales Distribut
Slide 8: Operating Margin
OPERATING MARGIN Basis Point Change Year-over-Year Q1 Q2 Q3 Q3 Trend Driver Prior Year 6.7% 5.1% 3.0% Higher Initial Mark-on and Vendor Support Cost of Sales Merchandise Cost 35 (15) 45 Category & Product Mix Cost of Sales Markdowns (75) (80) (105) Higher Promotional and Clearance Markdowns Cost of
Slide 9: Dollar Tree $1.25
DOLLAR TREE $1.25 Anniversary Prior Year Store Rollout 7,896 5,849 3,059 2,790 2,478 2,047 122 122 190 312 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Additions Cumulative 9
Slide 10: Updated Outlook
UPDATED OUTLOOK 4Q ‘22 FY ‘22 Sales - Enterprise $7.54B - $7.68B $28.14B - $28.28B Comp Sales – Enterprise MSD – HSD MSD Comp Sales – Dollar Tree MSD – HSD HSD Comp Sales – Family Dollar LSD – MSD LSD Selling Square Footage +2.8% Depreciation ~$770M Net Interest Expense ~$30M ~$127M Effective Tax Ra