Slide 1: Supplemental Financial Presentation 2nd Quarter 2023
Supplemental Financial Presentation 2nd 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 Discretionary FISCAL 2022 FISCAL 2023 Q1 Q2 Q3 Q4 Q1 Q2 TOTAL 11.2% 7.5% 8.5% 8.7% 3.4% 7.8% Customer Traffic (3.6%) (5.8%) (5.2%) (1.1%) 5.5% 9.6% Average Ticket 15.4% 14.2% 14.6% 10.0% (2.1%) (1.6%) Consumables 8.0% 7.9%
Slide 4: Category Mix
Category Mix Category as a Percentage of Net Sales 22.7% 20.4% 53.2% 51.5% 77.3% +230 bps 79.6% 46.8% +170 bps 48.5% 2Q22 2Q23 2Q22 2Q23 Consumables Discretionary Consumables Discretionary Discretionary Categories Discretionary Categories Seasonal & Variety Home, Apparel, Accessories, Seasonal, Elec
Slide 5: Family Dollar Taking Market Share
Family Dollar Taking Market Share % Change vs. Last Year - Consumables Market FD 11.1% 11.3% 10.7% 11.4% 10.6% 9.7% 8.8% 8.9% $ Sales 6.3% 6.9% Volume 3.5% 4.8% 2.7% 0.8% Unit -1.2% -1.7% -1.9% -2.2% -2.1% -2.6% Volume -4.3% -6.3% -5.8% -8.1% Q1 Q2 Q3 Q4 Q1 Q2 FY 2022 FY 2023 Source: Nielsen Market
Slide 6: Dollar Tree Taking Market Share
Dollar Tree Taking Market Share % Change vs. Last Year - Consumables Market DT 8.4% 3.6% Unit Volume -2.1% -2.6% -2.6% -3.3% -2.8% -3.0% -7.2% -9.5% -11.3% -11.2% Q1 Q2 Q3 Q4 Q1 Q2 FY 2022 FY 2023 Source: Nielsen Market Data 6
Slide 7: Operating Margin (Dollar Tree)
Operating Margin Year-Over-Year Basis Point Change FY 2023 Q2 Trend Drivers Q1 Q2 Prior Year 20.2% 15.4% 1 ↑ Lower freight costs COGS Merchandise Cost (420) (275) ↓ Lapping $1.25 last year, product cost inflation, product mix COGS Occupancy 5 35 ↑ Sales leverage COGS Distribution (80) (75) ↓ Higher
Slide 8: Operating Margin (Family Dollar)
Operating Margin Year-Over-Year Basis Point Change FY 2023 Q2 Trend Drivers Q1 Q2 Prior Year 2.9% 1.7% ↑ Lower freight costs COGS Merchandise Cost1 (85) 5 ↓ Product cost inflation, product mix COGS Occupancy 40 15 ↑ Sales leverage COGS Distribution (20) (5) ↔ COGS Shrink (60) (45) ↓ Unfavorable Inve
Slide 9: Updated Outlook: Third Quarter and Full-Year Fiscal 2023
Updated Outlook Third Quarter and Full-Year Fiscal 2023 Third Quarter Fiscal Year Sales - Enterprise $7.3B - $7.5B $30.6B - $30.9B Comparable Sales - Dollar Tree MSD MSD Comparable Sales - Family Dollar MSD MSD Comparable Sales - Enterprise MSD MSD Selling Square Footage Growth - 3.0% - 3.5% Depreci
Slide 10: Updated Outlook: Full-Year Fiscal 2023 Underlying Factors
Updated Outlook Full-Year Fiscal 2023 Underlying Factors Impacting FY 2023 Outlook Fiscal Year 2023 ends February 3, 2024, and includes a 53rd week • 53rd week expected to benefit Q4 by approximately $515 million in sales and $0.30 of diluted EPS Dollar Tree segment is cycling 600 bps of outsize
Slide 11: Fiscal 2023 EPS Outlook
Fiscal 2023 EPS Outlook A Tale of Two Halves $7.21 $5.78 - $6.081 45% 53rd Week 62% and Freight Relief Benefit From Breaking the 55% Buck 38% FY 2022 FY 2023 Actual Outlook 1st Half 2nd Half 1 Includes $30 million (or $0.12 per share) of costs for Q1 2023 accrual related to previously disclosed lega
Slide 12: Fiscal 2023 New Store Growth
Fiscal 2023 New Store Growth Back-End Weighted 464 600 - 650 48% 64% 52% 36% FY 2022 FY 2023 Actual Outlook 1st Half 2nd Half 12
Slide 13: Import Freight Comparisons
Import Freight Comparisons Dollar Tree - 2019 vs. 2023 Longer Terms and Higher Rates Feb - Apr Rates May - Jan Rates Long-Term & Charter Rate Category 47% Expire FY24 & FY25 72% Spot Contract 40% 28% 13% 2019 2023 Port of Entry Less Dependent on Transpacific 25% 25% Shipping / Lowest 35% Container F
Slide 14: Store Count by Format
Store Count by Format 8,103 8,177 2,170 Traditional: Dollar Tree stores primarily 3,630 at a fixed-price point of $1.25 per item DT Plus: Dollar Tree stores that include $3 and $5 Plus merchandise in their assortment 5,933 4,547 2Q22 2Q23 DT Plus Traditional 14