Dollar Tree, Inc. · NASDAQ:DLTR
Dollar Tree — Q1 2023 Earnings Presentation
13 slides from Dollar Tree's earnings presentation, May 25, 2023
Slide 1: Supplemental Financial Presentation 1st Quarter 2023
Supplemental Financial Presentation 1st 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 & Discretionary FISCAL 2022 FISCAL 2023 Q1 Q2 Q3 Q4 Q1 TOTAL 11.2% 7.5% 8.5% 8.7% 3.4% Traffic (3.6%) (5.8%) (5.2%) (1.1%) 5.5% Average Ticket 15.4% 14.2% 14.6% 10.0% (2.1%) Consumables 8.0% 7.9% 9.3% 9.0% 6.9% Discretionary 14.
Slide 4: Category Mix
CATEGORY MIX Category % of Net Sales 21.9% 19.9% 53.8% 52.0% 78.1% +200 bps 80.1% 46.2% +180 bps 48.0% 1Q22 1Q23 1Q22 1Q23 Consumables Discretionary Consumables Discretionary Discretionary Categories Discretionary Categories Seasonal & Variety Home, Apparel, Accessories, Seasonal, Electronics
Slide 5: Operating Income Margin (Dollar Tree)
OPERATING INCOME MARGIN Basis Point Change Year-over-Year Q1 Q1 Trend Driver Prior Year 20.2% Lower Freight Costs COGS Merchandise Cost 1 (420) Lower Initial Mark-on | Unfavorable Product Mix COGS Occupancy 5 Sales Leverage COGS Distribution (80) Maintenance, Compliance and Higher Hourly Wages COGS
Slide 6: Operating Income Margin (Family Dollar)
OPERATING INCOME MARGIN Basis Point Change Year-over-Year Q1 Q1 Trend Driver Prior Year 2.9% Lower Freight Costs COGS Merchandise Cost 1 (85) Lower Initial Mark-on | Unfavorable Product Mix COGS Occupancy 40 Sales Leverage COGS Distribution (20) Higher Maintenance / Compliance Costs COGS Shrink (60)
Slide 7: Updated Fiscal 2023 Outlook
UPDATED FISCAL 2023 OUTLOOK Second Quarter Fiscal Year Sales - Enterprise $7.0B - $7.2B $30.0B - $30.5B Comp Sales – Enterprise MSD LSD - MSD Comp Sales – Dollar Tree MSD LSD - MSD Comp Sales – Family Dollar MSD MSD Selling Square Footage Growth 3.0% to 3.5% Depreciation $845M - $850M Net Interest E
Slide 8: Updated Fiscal 2023 Outlook: Underlying Factors
UPDATED FISCAL 2023 OUTLOOK Underlying Factors Impacting Outlook ✓ Fiscal Year 2023 ending February 3, 2024 includes a 53rd week • 53rd week will benefit the 4th Quarter by approximately $500 million in Sales and $0.29 to diluted EPS ✓ Dollar Tree segment is cycling 600 basis point outsized gross ma
Slide 9: Fiscal 2023 EPS Outlook: Tale of Two Halves
FISCAL 2023 EPS outlook Tale of Two Halves $7.21 $5.73 – $6.13 1 53rd Week 45% & 60% Freight Relief $1.25 Benefit 55% 40% 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 legal proceedings with o
Slide 10: Import Freight Comparison: 2019 vs. 2023
Import Freight comparison: 2019 vs. 2023 Longer Terms, Feb - Apr Rates May - Jan Rates Long-Term & Charter Higher Rates Rate Category 47% Expire FY24 & FY25 72% Spot Contract 40% 28% 13% 2019 2023 Less Dependent on Transpacific Shipping | Port of Entry 25% 25% Lowest Container Freight Rates 45% 35%
Slide 11: Fiscal 2023 New Store Growth: Back-End Weighted
Fiscal 2023 New Store Growth Back-End Weighted 455 600 - 650 48% 57% 52% 43% FY 2022 FY 2023 Actual Outlook 1st Half 2nd Half
Slide 12: Store Count by Format (Dollar Tree)
STORE COUNT BY FORMAT 8,088 8,153 1,470 2,915 6,618 5,238 1Q22 1Q23 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
Slide 13: Store Count by Format (Family Dollar)
STORE COUNT BY FORMAT 8,074 8,266 330 885 3,985 4,610 3,759 2,771 1Q22 1Q23 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