Slide 1: Supplemental Financial Presentation 1st Quarter 2024
Supplemental Financial Presentation 1st 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, selling square footage g
Slide 3: Key Takeaways First Quarter 2024
KEY TAKEAWAYS First Quarter 2024 First Quarter 2024 adjusted diluted EPS was at the higher end of our outlook range. Comp growth of 1.0% for enterprise, 1.7% for Dollar Tree, and 0.1% for Family Dollar Comp driven by traffic gains, partially offset by lower average ticket Both banners contin
Slide 4: Comparable Store Sales Composition
Comparable Store Sales Composition Traffic, Average Ticket, Consumables, and Discretionary1 FISCAL 2023 FISCAL 2023 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD TOTAL 3.4% 7.8% 5.4% 6.3% 5.8% 1.7% - - - 1.7% Customer Traffic 5.5% 9.6% 7.0% 7.1% 7.4% 2.8% - - - 2.8% Average Ticket (2.1%) (1.6%) (1.5%) (0.7%) (1.5
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 -90 -280 -20 +190 +220 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% 49.2% 50.2% 52.0% 51.5% 51.6% 55.4% 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 -100 -20 +140 +260 +70 bps bps bps bps bps bps bps bps bps bps 80.1% 79.6% 82.0% 79.5% 80.8% 77.5% 76.5% 76.3% 77.7% 80.3% 80.8% 19.9% 20.4% 20.5% 19.2%
Slide 7: Family Dollar Taking Consumables Market Share
Family Dollar Taking 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% 1.2% 2.7% 1.5% 1.3% 1.2% 0.8% 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 competing markets
Slide 8: Dollar Tree Taking Consumables Market Share
Dollar Tree Taking Consumables Market Share % Change vs. Last Year Market DT 12.1% 8.7% 9.2% 9.4% 7.2% 7.9% 4.8% $ Sales 2.2% 1.3% 1.1% Volume 8.4% 8.0% 6.4% 4.7% 3.6% Unit 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 competing markets t
Slide 9: Sales per Square Foot by Business Segment
Sales per Square Foot by Business Segment $234 $220 $200 $201 $203 $235 $234 $227 $225 FY 19 FY 20 FY 21 FY 22 FY 23 $221 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 FY 19 FY 20 FY 21 FY 22 FY 23 F
Slide 10: Operating Margin (GAAP) - Dollar Tree
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2024 Q1 Trend Drivers Q1 Prior Year - GAAP 13.6% ↑ Lower freight costs Cost of sales 10 ↓ Increased sales of higher cost consumable merchandise ↓ Increased shrink resulting from unfavorable physical inventory results ↓ Temporary labor to s
Slide 11: Operating Margin (GAAP) - Family Dollar
Operating Margin (GAAP) Year-Over-Year Basis Point Change FY 2024 Q1 Trend Drivers Q1 Prior Year - GAAP 0.3% ↑ Lower freight costs Cost of sales 40 ↓ Product cost increases ↓ Increased sales of higher cost consumable merchandise ↑ Decreased legal costs (West Memphis legal matters accrual in Q1 2023)
Slide 12: Operating Margin (Non-GAAP)
Operating Margin (Non-GAAP) Year-Over-Year Basis Point Change FY 2024 Q1 Trend Drivers Q1 Prior Year - Non-GAAP 1.2% ↑ Lower freight costs Cost of sales 40 ↓ Product cost increases ↓ Increased sales of higher cost consumable merchandise ↑ Decreased legal costs Selling, general and administrative (10
Slide 13: Fiscal 2024 New Store Openings
Fiscal 2024 New Store Openings Pivot to Dollar Tree 200 180 157 160 140 41 120 107 100 80 Year-to-Date 75 60 116 2023 2024 40 75 41 20 32 116 32 107 157 0 0 0 0 0 0 0 2023 2024 2023 2024 2023 2024 2023 2024 1Q 2Q 3Q 4Q Dollar Tree Family Dollar 13
Slide 14: Updated Outlook
Updated Outlook Second Quarter and Full-Year Fiscal 2024 Second Quarter Fiscal Year Sales - Enterprise $7.3B - $7.6B $31.0B - $32.0B Comparable Sales - Dollar Tree 2.0 to 4.0 percent MSD Comparable Sales - Family Dollar "approximately flat" LSD Comparable Sales - Enterprise LSD LSD-MSD New Store Ope
Slide 15: Outlook Details
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% to 36.5% in the Dollar Tree segment • Expect full-year gross margin of approximatel
Slide 16: 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 17: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures Reconciliation of Adjusted Selling, General and Administrative Expenses - Family Dollar Segment 13 Weeks Ended May 4, 2024 April 29, 2023 Selling, general and administrative expenses (GAAP) $ 837.5 24.2% $ 834.9 24.6% Deduct: Store Closure Costs (16.8) (0.5%) -