Slide 1: Next Level: Our Clear Path Forward
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 2: Randy Guiler
Randy Guiler VICE PRESIDENT, INVESTOR RELATIONS
Slide 3: Welcome
AP Welcome Next Level OUR CLEAR PATH FORWARD
Slide 4: 2023 Investor Conference
2023 Investor Conference TIMING TOPIC SPEAKER MINUTES 8:00 – 8:05 Welcome & Agenda Randy Guiler 5 8:05 – 8:40 Opening Remarks & The Vision Rick Dreiling 35 8:40 – 9:10 Improving Sales Productivity & Enhancing Margins at Family Dollar Larry Gatta 30 9:10 – 9:40 Dollar Tree: Extending the Multi-Price
Slide 5: Forward-looking Statements
Forward-looking Statements This presentation contains “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995, concerning our business and outlook. These forward-looking statements can be identified by the fact that they address future events, plans
Slide 6: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 7: Rick Dreiling
Rick Dreiling CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 8: Execution and Investments Driving Results
Execution and Investments Driving Results FORTIFY THE BASE • Historical • Deliver exceptional underinvestment value to the customer • Taking action and Building • Accelerate sales and reinvesting Sustainable profit growth to expand Foundation shareholder returns STRATEGY EXECUTION • Break the Dollar
Slide 9: Inconsistent Performance and Below Potential
Inconsistent Performance and Below Potential FY15 – FY21 Deferred Store Maintenance Non-Competitive Wage Structure • Temporary Store Closures • Constricted Staff Hours (Equipment Failures) • Associate Turnover • Erosion of Store Aesthetics and • Early Close / Open Late Standards • Share Loss to Comp
Slide 10: Large Opportunity to Improve and Realize Latent Potential
Large Opportunity to Improve and Realize Latent Potential HISTORY OF UNDERINVESTMENTS ACROSS THE CORE BUSINESS OPERATIONS Average Hourly Wage Ramping Investment Repairs & Store Maintenance Ramping Investment ($ / Square Foot) FY19 FY20 FY21 FY22 FY23 E FY19 FY20 FY21 FY22 FY23 E Ramping Investment R
Slide 11: Large Opportunity to Improve and Realize Latent Potential
Large Opportunity to Improve and Realize Latent Potential UNDERINVESTMENTS AND RELUCTANCE TO CHANGE YIELDED SUBSTANTIAL UNFAVORABLE SALES IMPACT Store Days Closed Store In-Stock +3x FY19 FY20 FY21 FY22 FY23-26E FY19 FY20 FY21 FY22 FY23-26E Dollar Tree: Consumable Comp and Total Traffic Family Dollar
Slide 12: Early Investments Generating Results
Early Investments Generating Results FY22 WAGE INVESTMENT CONTINUES TO DRIVE FAVORABLE RESULTS 51% +25% +2.75% 33% Reduction Weekly Applicants Comp Sales Lift Reduction Early Close / Late Open Store Manager Vacancy
Slide 13: Early Investments Generating Results
Early Investments Generating Results COMPREHENSIVE MARKET REFRESH YIELDS QUICK PAYBACK AND SUSTAINED RESULTS • Investment made to refresh stores in test market • Leverage new store setup teams to restock shelves, empty back rooms and clean up the stores • Executed targeted labor investments Metric D
Slide 14: Attractive Retail Segment
Attractive Retail Segment 1 2 3 4 5 COMPETITIVE DURABLE IN VARIOUS GROWTH & STORE VALUE CONVENIENCE ADVANTAGES ECONOMIC CYCLES WHITE SPACE • Near price parity with • Fill-in shop • Large purchasing • Trade-in appeal • Low share of wallet mass / discount scale • Proximity to • ‘Value-based’ • Substan
Slide 15: Retail Fundamentals Drive Accelerated Growth Opportunities
Retail Fundamentals Drive Accelerated Growth Opportunities • Merchandising Comp • Renovations Store • Sales / Square Foot Sales • New Formats Attractive • Workforce Management New Store Efficient • Store / DC Standards • Expanded Geographies Expansion Growth Operations Algorithm • Upgrades & Renovat
Slide 16: Key Messages to Take Away from Today
3 Key Messages to Take Away from Today 1▪ Dollar Tree, Inc. is on an exciting path to accelerate sales and profit growth • Compelling merchandising plans to deliver an expanded value assortment across multiple price points and competitive private brands • Operational improvements through our work, o
Slide 17: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 18: Proven Retail Leadership Team
Proven Retail Leadership Team Rick Dreiling Larry Gatta Rick McNeely Mike Creedon CHAIRMAN AND CHIEF MERCHANDISING OFFICER, CHIEF MERCHANDISING OFFICER, CHIEF OPERATING OFFICER CHIEF EXECUTIVE OFFICER FAMILY DOLLAR DOLLAR TREE Mike Kindy Bobby Aflatooni Jenn Hulett Jeff Davis CHIEF SUPPLY CHAIN CHIE
Slide 19: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 20: Larry Gatta
Larry Gatta CHIEF MERCHANDISING OFFICER, FAMILY DOLLAR
Slide 21: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 22: The Most Diverse Customer Base in Retail
The Most Diverse Customer Base in Retail % OF SALES FROM NON-WHITE SHOPPERS 50% 49% 43% 42% 40% 40% 38% 38% 37% 37% 37% 36% 35% 33% 31% 30% 29% 29% 29% 29% 28% 24% 24% 22% 18% 15% 12% Source: Numerator
Slide 23: The Most Diverse Customer Base in Retail
The Most Diverse Customer Base in Retail FAMILY DOLLAR SHOPPER SEGMENTS Patrice Peggy Faye Joe Emma Description Urban/Suburban Multi-Cultural Rural White Females Millennial/Gen Z Females Male Shoppers New Shoppers Over-index on Smart Coupon Nearly 50% are Boomers 33% Moved in last 2 years Over-index
Slide 24: Geographically Balanced Footprint
Geographically Balanced Footprint % OF STORES Large geographic reach with 8,000+ stores across variety of population densities 42% 34% 24% Most diverse retailer with opportunity for continued Urban Suburban Rural growth as half of low-income households do not have a Sales per Selling Family Dollar i
Slide 25: Improved Price Position
Improved Price Position PRICING INDEX Known Value Items Full Book 105 104.6 • Price is 104 #1 Motivating 104.5 Factor 103 102.1 Price for customers 102 investments to shop 100.5 101 Family Dollar 101.8 100 • Delivering 99 99.9 on pricing 98 improvements 97 for our customers 96 relative to FEB MAR MA
Slide 26: Price Actions Led to Positive Traffic and Average Ticket Comp Trends
Price Actions Led to Positive Traffic and Average Ticket Comp Trends TRAFFIC % 4.3% 0.5% 0.1% -1.2% -3.7% Q1 Q2 Q3 Q4 Q1 FY22 FY23 AVERAGE TICKET % 5.3% 4.1% 3.3% 2.2% 1.0% Q1 Q2 Q3 Q4 Q1 FY22 FY23
Slide 27: Taking Dollar Market Share
Taking Dollar Market Share HIGHEST DOLLAR SHARE GROWTH IN 15 QUARTERS Consumable Dollar % Change vs. Last Year Market FD 11.1% 11.3% 10.6% 10.7% 9.7% 8.8% 8.9% 6.9% 6.3% 3.5% Q1 Q2 Q3 Q4 Q1 FY22 FY23 Source: Nielsen market data
Slide 28: Taking Unit Market Share
Taking Unit Market Share HIGHEST UNIT SHARE GROWTH IN 14 QUARTERS Consumable Unit % Change vs. Last Year Market FD +0.8% -1.2% -1.7% -1.9% -2.1% -2.2% -4.3% -5.8% -6.3% -8.1% Q1 Q2 Q3 Q4 Q1 FY22 FY23 Source: Nielsen market data
Slide 29: Improving Store Productivity & Enhancing Gross Margins
Improving Store Productivity & Enhancing Gross Margins Expanded & Emerging Formats Private Brands Enhanced Marketing Improved Assortment Designed to Drive Store Productivity and Enhance Margins
Slide 30: Emerging Formats to Support Diverse Customer Base
Emerging Formats to Support Diverse Customer Base H2.5 Primary Format Rural XSB 6,700 to 8,700 selling square feet Tailoring Space and Assortment to Local Demographics
Slide 31: New H2.5 Format
New H2.5 Format PRIMARY STORE FORMAT AND DRIVER OF GROWTH • Improved adjacency flow 8% More sales • Removed drive aisle and added additional gondola worth 60 additional stores based on FY23 renovations 11% More sales per foot • Optimized space toward highly productive categories • Adding up to 30 fr
Slide 32: New H2.5 Format
New H2.5 Format
Slide 33: Emerging Formats to Support Diverse Customer Base
Emerging Formats to Support Diverse Customer Base H2.5 Primary Format Rural Larger Format XSB 6,700 to 8,700 > 8,700 selling square feet selling square feet Tailoring Space and Assortment to Local Demographics
Slide 34: Increasing Relevance in Rural Stores
Increasing Relevance in Rural Stores 20% More sales • Optimizing category space allocation • More Family Dollar seasonal • Strategically integrating Dollar Tree assortment • Optimized space toward highly 20% More sales per foot productive categories • Adding up to 30 frozen / refrigerated doors • ~1
Slide 35: Emerging Formats to Support Diverse Customer Base
Emerging Formats to Support Diverse Customer Base H2.5 Primary Format Rural Larger Format XSB Extra Small Box 6,700 to 8,700 > 8,700 < 6,700 selling square feet selling square feet selling square feet Tailoring Space and Assortment to Local Demographics
Slide 36: Extra Small Box Format
Extra Small Box Format INITIAL RENOVATION GENERATING 30%+ SALES LIFT • XSB format adds elements of H2.5 to small stores • 78” merchandising area with cap-shelves for holding power • Adding up to 30 frozen/refrigerated doors • Layouts created based on store-by-store sales and space productivity evalu
Slide 37: Increasing Renovations into New Formats
Increasing Renovations into New Formats ANNUAL RENOVATED STORE COUNT 1,000 815 FY 2022 FY 2023E FY 2026E
Slide 38: Market-Based Renovations
Market-Based Renovations • Testing out market-based renovations • Targeting 85% of stores in the market with our latest format • Cross-functional team to ensure high level execution • Leveraging efficiencies • Training store employees and field teams • Competitive wages • Planning market-wide grand
Slide 39: Improving Store Productivity & Enhancing Gross Margins
Improving Store Productivity & Enhancing Gross Margins Expanded & Emerging Formats Private Brands Enhanced Marketing Improved Assortment • H2.5 • Rural • Extra Small Box Designed to Drive Store Productivity and Enhance Margins
Slide 40: Optimizing Assortments to Meet Evolving Customer Needs
Optimizing Assortments to Meet Evolving Customer Needs 1,900 New SKUs • Assortment is the #2 motivating factor for customers to shop Family Dollar • Maximizing sales productivity through increased merchandisable space -1,000 Deleted SKUs • 25% more resets planned in FY23 vs. FY22 • Advancing localiz
Slide 41: Assortment Localization
Assortment Localization UTILIZING ETHNICITY, DEMAND INDEXING, STORE VOLUME AND SHRINK RATES TO MODIFY STORE-LEVEL ASSORTMENTS Category # of Versions Localization Method Pet 350 Demand: Dog vs. Cat Carbonated soft drinks 323 Demand: Brand / Flavors Laundry 86 Demand and Shrink: Pods vs. Liquid Hair c
Slide 42: 78” Shelf Profile: Condiments
78” Shelf Profile: Condiments Before: Merchandised to 72” After: Merchandised to 78” 20% More SKUs in the same footprint | 20% sales comp post reset Note: Store performance versus 13-week period prior to the renovation
Slide 43: 78” Shelf Profile: Bleach
78” Shelf Profile: Bleach Before: Merchandised to 72” After: Merchandised to 78” 17% more holding power in the same footprint for the highest market share category Note: Store performance versus 13-week period prior to the renovation
Slide 44: Enhanced Navigation and POP Utilization
Enhanced Navigation and POP* Utilization Regimen Education at Shelf 11% more SKUs in the same footprint | 11% sales comp post reset * POP: Point-of-Purchase
Slide 45: Category Resets Complete by November 2023
Category Resets Complete by November 2023 PLANOGRAM RESET COMPLETION 100% 70% 38% May 2023 July 2023E November 2023E
Slide 46: Improving Store Productivity & Enhancing Gross Margins
Improving Store Productivity & Enhancing Gross Margins Expanded & Emerging Formats Private Brands Enhanced Marketing Improved Assortment • H2.5 • Localization • Rural • 78” Shelf Profile • Extra Small Box • POP Utilization • Resets Designed to Drive Store Productivity and Enhance Margins
Slide 47: Private Brands
Private Brands Brand Refresh Quality Assurance Operating Efficiencies • Improved and defined NEW TEST KITCHEN • Accelerate auction process brand architecture • Dedicated environment • Improved payment terms • Building customer trust • QA specialist to focus on • Improved presentation providing custo
Slide 48: New “Hybrid” Brand Architecture
New “Hybrid” Brand Architecture NEW “HYBRID MODEL” ARCHITECTURE CONSOLIDATES OUR BRANDS WITH A CONSISTENT BRAND MESSAGE OF “FAMILY” FOR OUR CUSTOMERS
Slide 49: Test Kitchen
Test Kitchen • Opened our new Test Kitchen in February • Will ensure the excellence of our private brand products • Enhancing our quality control standards with increased testing and rigor • Identifying areas for improvement within product composition and consumer expectation
Slide 50: Family Wellness Packaging Update
Current Control Brand New Private Brand Family Wellness Packaging Update • Total of 70+ new SKUs by FY23 Q4 • Alignment of brands under one consistent “Family” brand message • Customers prefer simple and concise branding • Converting over 300 Control Brands to Private Brands
Slide 51: New Vitamin Program
New Vitamin Program • Launching in FY23 Q4 • Total of 35+ new SKUs • Branding exclusive to Family Dollar
Slide 52: Importance of Private Brands
Importance of Private Brands Private Brands provide VALUE across all highly consumable categories and represent: 11% of all SKUs 13% of all sales 23% of comp growth 19% of gross margin Note: Q1 FY23 performance
Slide 53: Increasing Private Brand Penetration
Increasing Private Brand Penetration PRIVATE BRAND PENETRATION 20% 14% FY 2023E FY 2026E New Items 250-275 550-650 New Items Control Brand Conversions 350-400 700-900 Conversions Each 100 bp increase in private brand penetration drives 14 bps in consumables gross margin
Slide 54: Improving Store Productivity & Enhancing Gross Margins
Improving Store Productivity & Enhancing Gross Margins Expanded & Emerging Formats Private Brands Enhanced Marketing Improved Assortment • H2.5 • Localization • Brand Refresh • Rural • 78” Shelf Profile • Quality Assurance • Extra Small Box • POP Utilization • Improved Efficiencies • Resets Designed
Slide 55: Transform the Customer Experience
Transform the Customer Experience From To Rewards & Shoppers can redeem coupons, but are Distinctive experience through an Engagement not rewarded for loyalty or engagement expanded suite of rewards that match their engagement level Limited advertising options that Expanded offering including sponso
Slide 56: Improving Promotional Offers and Print Ads
Improving Promotional Offers and Print Ads OLD (5/1/22) NEW (4/30/23) Updated look & feel to better align with our new brand purpose
Slide 57: Improving Store Productivity & Enhancing Gross Margins
Improving Store Productivity & Enhancing Gross Margins Expanded & Emerging Formats Private Brands Enhanced Marketing Improved Assortment • H2.5 • Localization • Brand Refresh • Rewards & Engagement • Rural • 78” Shelf Profile • Quality Assurance • Retail Media • Extra Small Box • POP Utilization • I
Slide 58: Key Takeaways
Key Takeaways FAMILY DOLLAR • Remain laser focused on Value and Convenience • Price • Assortment optimization/cooler expansion • Promotions • Continue to retain and recruit new customer trips and transactions • Private Brand acceleration that delivers on customer expectations for quality, value, and
Slide 59: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 60: Rick McNeely
Rick McNeely CHIEF MERCHANDISING OFFICER, DOLLAR TREE
Slide 61: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 62: Nearly 100 Million U.S. Households Shop Dollar Tree
Nearly 100 Million U.S. Households Shop Dollar Tree DOLLAR TREE SHOPPER SEGMENTS Passionates Monthly Infrequent New % of sales 25% 50% 20% 5% # of Households 4 Million 21 Million 66 Million 3.3 Million Avg annual trips 69 22 5 5 ► 94 Million Annual Shoppers, fourth ► +3.3 Million Net New shoppers in
Slide 63: Extending the Multi-Price Journey
Extending the Multi-Price Journey Successfully Dollar Tree The Opportunity Multi-Price Broke the Dollar PLUS Ahead Designed to Drive Store Productivity and Enhance Margins
Slide 64: Significant Positive Impact from BTD in 2022
Significant Positive Impact from BTD* in 2022 +9% Allowed for Restoration of Comp Store ATTRACTIVE MARGINS Sales *BTD: Breaking the Dollar; moving primary price-point from $1 to $1.25
Slide 65: Breaking the Dollar
Breaking the Dollar WHY IS BREAKING THE DOLLAR COMPELLING FOR THE CONSUMER? • NOT about increasing prices on existing goods; extremely focused on delivering compelling value to the consumer at higher price points • Enables a more compelling value proposition and assortment • Reintroduction of discon
Slide 66: Breaking the Dollar: Enhanced Value Proposition
Breaking the Dollar: Enhanced Value Proposition $1.00 PRODUCT $1.25 PRODUCT 40 oz 1L 11.8 oz 56 oz 1.5L 16.0 oz Significant Value Enhancement Despite Underlying Goods Inflation Throughout Period
Slide 67: Breaking the Dollar: Enhanced Value Proposition
Breaking the Dollar: Enhanced Value Proposition RE-INTRODUCED ITEMS EXPANDED BRANDS 1.25L
Slide 68: Restored Long-term Health of Comps
Restored Long-term Health of Comps MULTI-YEAR COMPS, ELIMINATING VOLATILITY OF RECENT YEARS, SHOW CLEAR INFLECTION IN LONG-TERM TRENDS 4-Year Comp CAGR 7.0% 6.0% • Significant sales comp recovery has 5.0% driven attractive multi-year growth 4.0% 3.0% • Consumables sales had stagnated 2.0% 1.0% befor
Slide 69: Dollar Tree Growing Unit Market Share
Dollar Tree Growing Unit Market Share UNIT SHARE GROWTH REBOUNDED IN Q4 2022 Consumable Unit % Change vs Last Year Market Dollar Tree 3.6% -2.1% -2.6% -2.6% -3.3% -2.8% -7.2% -9.5% -11.3% -11.2% Q1 Q2 Q3 Q4 Q1 FY22 FY23 Excluding: Alcohol, Bakery, Deli, Gen Merch, Produce and Tobacco. Source: Nielse
Slide 70: Dollar Tree Growing Market Share in Consumables
Dollar Tree Growing Market Share in Consumables Q1 UNIT MARKET SHARE IN CONSUMABLE CATEGORIES 13.6% Candy unit share, up from 12% 7.9% HBA unit share, up from 7.6% 2.3% Dry grocery unit share, up from 2.1% 12.6% Household care unit share, up from 10.9% 1.6% Frozen unit share, up from 1.4% 3.3% Pet u
Slide 71: Extending the Multi-Price Journey
Extending the Multi-Price Journey Successfully Dollar Tree The Opportunity Multi-Price Broke the Dollar PLUS Ahead • 2022 Results • Enhanced Product Offering • Customer Acceptance Designed to Drive Store Productivity and Enhance Margins
Slide 72: Dollar Tree PLUS Introduction
Dollar Tree PLUS Introduction RATIONALE BEHIND PRICE POINTS ABOVE $1.25 • Customer insights highlighted opportunities to capture more share of wallet • Studied customer shopping behaviors to find out where they shopped and what they were buying after shopping at Dollar Tree • Data from the millions
Slide 73: Dollar Tree Multi-Price
Dollar Tree Multi-Price LAUNCHED AS “DOLLAR TREE PLUS” BUT MULTI-PRICE IS NOW BECOMING A CORE PART OF THE STRATEGY • Tested initial assortment in 2019 • Expanded to 4 DCs and 2,500 stores by end of 2022 • Assortment mix highly discretionary • Strongest incrementality in Seasonal • Expanding to 7 DCs
Slide 74: Dollar Tree PLUS Impact on $1.25 Assortment
Dollar Tree PLUS Impact on $1.25 Assortment DOLLAR TREE PLUS SEASONAL ASSORTMENT IS DRIVING SALES COMPS Seasonal Comp Sales Total Comp vs. Comp excluding Dollar Tree PLUS 37% 35% Total Easter comp sales = 12% 27% Easter comp sales 16% excluding DTP 12% assortment = 2% 10% 6% 4% 2% -1% Halloween * Th
Slide 75: Extending the Multi-Price Journey
Extending the Multi-Price Journey Successfully Dollar Tree The Opportunity Multi-Price Broke the Dollar PLUS Ahead • 2022 Results • Evolution • Enhanced Product • Highly Discretionary Offering • 4,300 Stores by • Customer Acceptance Year-End 2023 Designed to Drive Store Productivity and Enhance Marg
Slide 76: Multi-Price: What Has Been Done
Multi-Price: What Has Been Done 2023 STATUS AND EXPANSION PLANS Dollar Tree PLUS • 2,915 stores at the end of Q1 • 1,350 additional stores this year $3, $4 and $5 Frozen • 3,935 stores at the end of Q1 • 1,600 additional stores this year
Slide 77: Multi-Price: What Has Been Done
Multi-Price: What Has Been Done 2023 STATUS AND EXPANSION PLANS $1.50 Balloons • 142-store test in Louisiana with no unit decline • Rest of chain rollout by end of June 2023 Hallmark Greeting Cards • Changing the mix between $0.50 and $1.00 cards (from 1/3rd $1.00 cards to 2/3rd $1.00 cards) • Wave
Slide 78: Multi-Price: What Has Been Done
Multi-Price: What Has Been Done 2023 STATUS AND EXPANSION PLANS Pre-Paid Gift Cards • Piloted two stores in March • Expanded to 50 stores in Q1 • Roll out to all stores by Sept 2023 • Early results are strong: • 48% transactions include Hallmark greeting cards • 60% include high-margin party items
Slide 79: Multi-Price: What Has Been Done
Multi-Price: What Has Been Done 2023 STATUS AND EXPANSION PLANS Branded Bread • Tested $3 direct store delivery branded bread • Achieved high double digit comp sales • Expanding to an additional 400 stores by year end • Further rollout will require different brands/vendors by region and multiple pri
Slide 80: Multi-Price: What Has Been Done
Multi-Price: What Has Been Done 2023 STATUS AND EXPANSION PLANS Packaged-Ice • Upgraded our program from 5 lbs. to 7 lbs. • Converted 2,800 stores in Q1 to $2 • Achieved +11.2% comp sales • 2,100 additional stores convert by end of 2023 • Improved initial markup Refrigerated • Rolled out 140-store t
Slide 81: Multi-Price Frozen: Compelling Value
Multi-Price Frozen: Compelling Value $1.25 PRODUCTS MULTI-PRICE PRODUCTS Single Serving Family Meal Solution
Slide 82: Frozen / Refrigerated Retail Comps
Frozen / Refrigerated Retail Comps STRONG COMP GROWTH WITH ROLLOUT OF MULTI-PRICE Frozen / Refrigerated Food Retail Comp Multi-Price Retail Comp MP %ofofDT MP% Retail SalesSales Category as a % of 21.8% category 19.8% sales grew 13.0% to 21.8% in 5.9% 15.9% 11.0% 12.7% Q1 2023 0.0% 0.0% 0.0% 0.3% 0.
Slide 83: Multi-Price Frozen Expansion
Multi-Price Frozen Expansion TRANSITIONING TO MAJORITY MULTI-PRICE ASSORTMENT OVER TIME $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 Past Set: 0 doors of multi-price 10 doors @ $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $1.25 $3 $4 $5 Current Set: 7 doors @ $1.25 3 doors @ $3, $4 and $
Slide 84: Multi-Price Ticket
Multi-Price Ticket WHEN A MULTI-PRICE ITEM IS IN THE BASKET, CUSTOMERS SPEND ~2.2X MORE THAN THE AVERAGE TRANSACTION Average Sales $ per Transaction $26 $27 $12 Dollar Tree PLUS MP Frozen Average Basket
Slide 85: Extending the Multi-Price Journey
Extending the Multi-Price Journey Successfully Dollar Tree The Opportunity Multi-Price Broke the Dollar PLUS Ahead • 2022 Results • Evolution • Traffic Driver • Enhanced Product • Highly Discretionary • Accelerated Rollout Offering • 4,300 Stores by • Expanded Offering • Customer Acceptance Year-End
Slide 86: Multi-Price Future
Multi-Price Future KEY TENETS • Opening price point remains the core of our business • Build multi-price assortments that are compelling value propositions and are incremental to our core business • Provide additional purchase occasions that matter to our customer • Gain expense leverage through hig
Slide 87: Multi-Price: Category Targets
Multi-Price: Category Targets TOTAL MARKET SPEND BY PRICE BAND AND AREAS TO PROSPECT Total Total Addressable Market ($B) Consumables Addressable Dollar Tree % of Categories Market Market Share $2.00 and Below $2.01 - $5.00 $5.01 - $10.00 $10.01+ ($B) HOUSEHOLD* $60.0 ~2% $2.0 $12.0 $18.1 $27.6 HEALT
Slide 88: Multi-Price: Discretionary Opportunities
Multi-Price: Discretionary Opportunities LARGE OPPORTUNITY TO OFFER UP-SPEC GOODS $1.25 PRODUCTS MULTI-PRICE PRODUCTS Electronics Toys Patriotic / 11 inch Lawn & 18 inch Garden
Slide 89: Multi-Price: Discretionary Opportunities
Multi-Price: Discretionary Opportunities LARGE OPPORTUNITY TO OFFER COMPLEMENTARY GOODS $1.25 PRODUCTS MULTI-PRICE PRODUCTS Seasonal Candy Toys 6 ft 7 ft Seasonal
Slide 90: Multi-Price Future Expansion
Multi-Price Future Expansion TARGETING ADDITIONAL CATEGORIES IN 2024 Consumables Discretionary • Healthcare & Baby • Complete Dollar Tree PLUS rollout across remaining • Snacks categories • Beverage • Larger Balloons • Seasonal Candy • Household Products • Pet • Home Décor & Candles • Center Store G
Slide 91: Improving Operating Efficiencies to Support Multi-Price
Improving Operating Efficiencies to Support Multi-Price TAKING ACTION TO ADDRESS OPERATIONAL OPPORTUNITIES • Raising shelf height • Space productivity • Rightsizing assortments • Dense up store • Increased throughput • Price clarity
Slide 92: Extending the Multi-Price Journey
Extending the Multi-Price Journey Successfully Dollar Tree The Opportunity Multi-Price Broke the Dollar PLUS Ahead • 2022 Results • Evolution • Traffic Driver • Additional Price Points • Enhanced Product • Highly Discretionary • Accelerated Rollout • Enhanced Synergies Offering • 4,300 Stores by • E
Slide 93: Key Takeaways
Key Takeaways DOLLAR TREE • Leveraging our 68% U.S. household penetration to gain share of wallet • Convenience and value • Simplicity in model to continue to drive productivity • Thrill of the hunt • Our strategy starts and ends with value for our shoppers • Retaining our position as a destination
Slide 94: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 95: Mike Creedon
Mike Creedon CHIEF OPERATING OFFICER
Slide 96: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 97: Operate with Excellence & Accelerate Growth
Operate with Excellence & Accelerate Growth The Real Estate Our Worker Our Work Our Workplace Opportunity Ahead Designed to Drive Store Productivity and Enhance Margins
Slide 98: Our Worker
STORE STANDARDS FOCUS Our Worker Wages • Competitive pay and meaningful benefits, including incremental store wages invested in cashiers, assistant managers, store managers and district managers Training • General and job-specific training programs at all levels, including leadership development, co
Slide 99: Our Worker: Voluntary Turnover
DM Voluntary Turnover STORE STANDARDS FOCUS Our Worker Big 3 Turnover Focus P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P1 P2 P3 DT DM FD DM Relentless focus on retaining talent in SM Voluntary Turnover key leadership positions in our stores • District Managers (DMs), Store Managers (SMs), Assistant Store Mana
Slide 100: Operate with Excellence & Accelerate Growth
Operate with Excellence & Accelerate Growth The Real Estate Our Worker Our Work Our Workplace Opportunity Ahead • Wages • Training • Career Path Designed to Drive Store Productivity and Enhance Margins
Slide 101: Our Work
STORE STANDARDS FOCUS Our Work Job Simplification Activity-based engineered labor standards build underway • Including customer journey, utilization study, and process and method review Focus on workload planning and gatekeeping • Right-sized volume of tasks and communication • Clear expectations fo
Slide 102: Our Work
STORE STANDARDS FOCUS Our Work Freight process simplification • Streamlined/simplified delivery for easier unloading • Improved sort, unload and stocking efficiency • Opportunity to reallocate at least 5 hours per week Expanded holding power on sales floor • More variety on the sales floor • Reduced
Slide 103: Operate with Excellence & Accelerate Growth
Operate with Excellence & Accelerate Growth The Real Estate Our Worker Our Work Our Workplace Opportunity Ahead • Wages • Job Simplification • Training • Tools & Technology • Career Path • Freight Processing Designed to Drive Store Productivity and Enhance Margins
Slide 104: Our Workplace
STORE STANDARDS FOCUS Our Workplace Sky shelves house How the experience will new categories and fast-moving SKUs come to life in our stores Rotacarts reduce time and effort unloading freight Enhanced shrink measures throughout store Backroom used mainly as a receiving area Simplified tasking vs. st
Slide 105: Our Workplace
STORE STANDARDS FOCUS Our Workplace Initial results show positive sales impact with less than 60-day payback Zone ~12 stores • Dollar Tree +6.9% sales lift • Family Dollar +3.7% sales lift District ~1,000 stores Region ~72 stores Note: Performance based on 16-week period pre-certification versus 14-
Slide 106: Operate with Excellence & Accelerate Growth
Operate with Excellence & Accelerate Growth The Real Estate Our Worker Our Work Our Workplace Opportunity Ahead • Wages • Job Simplification • Layout & Inventory • Training • Tools & Technology • G.O.L.D Standard • Career Path • Freight Processing • Efficient Use of Space Designed to Drive Store Pro
Slide 107: New Store Development / Renovations & Construction Vision
New Store Development / Renovations & Construction Vision TARGETED FY26 ANNUAL RUN RATE ~1,000 New store openings annually ~3,000 Renovations & Dollar Tree PLUS projects annually ~5,000 Optimize & modernize store projects per year
Slide 108: New Store Strategy
New Store Strategy “Own” / Accelerate Expand Family Dollar Continue Family Dollar Suburban Penetration Urban Footprint Rural Expansion
Slide 109: Renovation Strategy
Renovation Strategy IMPROVE WORKPLACE & DRIVE COMPS Family Dollar Dollar Tree Optimize & Modernize Renovations Multi-Price Rollouts Our Stores ~1,000 Projects per Year ~2,000 Projects per Year ~5,000 Projects per Year FY23-26 FY23-26 Ongoing
Slide 110: Operate with Excellence & Accelerate Growth
Operate with Excellence & Accelerate Growth The Real Estate Our Worker Our Work Our Workplace Opportunity Ahead • Wages • Job Simplification • Layout & Inventory • New Stores • Training • Tools & Technology • G.O.L.D Standard • Renovations • Career Path • Freight Processing • Efficient Use of Space
Slide 111: Key Takeaways
Key Takeaways OPERATIONS & REAL ESTATE • Our commitment to Our Worker, Our Work and Our Workplace will… • Enable us to further reduce associate turnover • Enhance our ability to attract, hire, promote, train and retain associates • Support our ability to serve customers, while operating efficiently
Slide 112: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 113: Mike Kindy
Mike Kindy CHIEF SUPPLY CHAIN OFFICER
Slide 114: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Our Supply All Up: Enhancing Journey Accelerate Chain $10+ EPS FY26 Margins Growth Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Right Team | Right Time
Slide 115: Developing Our Supply Chain
Developing Our Supply Chain Optimize DC and Improve the Enhance Supply Transportation Focus on People Store Delivery Chain Systems Network Process Designed to Drive DC and Store Productivity / Enhance Margins
Slide 116: Investing in Temperature Control at All DCs
Investing in Temperature Control at All DCs Eliminates multiple touches Allows us to ship Ends expensive Drives positive OTC products and inefficient associate direct to stores crossdocking relations Alleviates the need to store and select OTC product in a special area
Slide 117: Leveraging Current Footprint to Grow Capacity
Leveraging Current Footprint to Grow Capacity • Increases selection and storage locations • Supports SKU growth and expansion • Creates greater slotting flexibility • Boosts storage capacity without increasing DC size
Slide 118: Testing New Distribution Capabilities
Testing New Distribution Capabilities OCALA, FL DC Dual-Bannered Highly Automated Shared Labor Facility and Engineered Deliveries Efficiency
Slide 119: Network Analysis Supporting Future Expansion
Network Analysis Supporting Future Expansion CURRENT FAMILY DOLLAR AFTER MID-SOUTH NETWORK PROPOSED DC • Relieves capacity constrained DCs • Reduces stem miles • Improves driver efficiency and turn • Allows stores to be served by optimal DC
Slide 120: Transportation Equipment Investments
Transportation Equipment Investments INITIATE AND BUILD THE DOLLAR TREE MODERNIZE THE EXISTING FLEET OWNERSHIP PROGRAM FAMILY DOLLAR TRAILER FLEET • Reduces overall transportation costs • Improves average trailer age and instituting • Negotiate freight rates for power only versus an effective life c
Slide 121: Developing Our Supply Chain
Developing Our Supply Chain Optimize DC and Improve the Enhance Supply Transportation Focus on People Store Delivery Chain Systems Network Process • Temperature Control • Racking & Storage • Build Out and Optimize Network • Modern Equipment Designed to Drive DC and Store Productivity / Enhance Margi
Slide 122: Store and DC Inventory Management
Store and DC Inventory Management Store Instocks Store Order Forecasting DC Service Levels and DC Fulfillment System DC Storage Utilization On-Time and In-Full (OTIF) Forecasting Capabilities Compliance Program Network Inventory
Slide 123: Distribution Center Systems Platform
Distribution Center Systems Platform FUNCTIONAL AREA BENEFITS Seamless Integration between systems and DC mechanization Engineered labor standards Warehouse Management Immediate, real-time associate feedback Labor Management Increased productivity Yard Management Efficient product storage and locati
Slide 124: Transportation Management System
Transportation Management System • Accelerated route planning • Updated mapping • Increased truck turns • Flexibility to minimize cost or maximize driver productivity • Improved visibility • Cloud-based
Slide 125: Developing Our Supply Chain
Developing Our Supply Chain Optimize DC and Improve the Enhance Supply Transportation Focus on People Store Delivery Chain Systems Network Process • Temperature Control • Planning Platform • Racking & Storage • Warehouse Management • Build Out and • Labor Management Optimize Network • Yard Managemen
Slide 126: Our People Are Our First Priority
Our People Are Our First Priority WHAT WE ARE DOING • Driving continuous improvement and simplification, including improving our facilities: • Temperature control • LED lighting • New systems and equipment • Hiring safety and sanitation resources at every DC • Investing in wages, benefits and incent
Slide 127: Developing Our Supply Chain
Developing Our Supply Chain Optimize DC and Improve the Enhance Supply Transportation Focus on People Store Delivery Chain Systems Network Process • Temperature Control • Planning Platform • Improve Wages • Racking & Storage • Warehouse Management • Enhance Work Environment • Build Out and • Labor M
Slide 128: Our Current Truck Loading and Store Delivery Process
Our Current Truck Loading and Store Delivery Process DC to Truck Truck to Store Stock Room Stock Room to Shelf Product picked and boxes sent Long, arduous, manual process Boxes stacked randomly, Manually loaded on U-boats, down conveyor to truck to unload box by box at store employees search for pro
Slide 129: Our Future Truck Loading and Store Delivery Process
Our Future Truck Loading and Store Delivery Process DC to Truck Truck to Store Stock Room Stock Room to Shelf Product picked Quick, efficient unloading, RCs stacked and staged Carts are built for directly to RC requiring one person by family groups efficient stocking Stage Carts Here Chemical Chemic
Slide 130: Leverage the Current, Build the Future
Leverage the Current, Build the Future • Greater maneuverability with heavier freight • Nestable components to prevent: • Backroom congestion • Theft due to outside storage • Driver from having to work around empty components when completing load and returning to the DC
Slide 131: Developing Our Supply Chain
Developing Our Supply Chain Optimize DC and Improve the Enhance Supply Transportation Focus on People Store Delivery Chain Systems Network Process • Temperature Control • Planning Platform • Improve Wages • Rotacart Delivery • Racking & Storage • Warehouse Management • Enhance Work Environment Proce
Slide 132: Key Takeaways
Key Takeaways SUPPLY CHAIN • Build a distribution and transportation network to support store growth and merchandising programs • Roll out streamlined store delivery chain-wide by end of 2027 • Operate a co-bannered DC with shared transportation in 2024 • Implement new supply chain systems within th
Slide 133: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 134: Bobby Aflatooni
Bobby Aflatooni CHIEF INFORMATION OFFICER
Slide 135: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Transforming Adding It Productivity & Multi-Price Excellence & Work with All Up: Enhancing Journey Accelerate Technology $10+ EPS FY26 Margins Growth Larry Gatta Rick McNeely Mike Creedon Bobby Aflatooni Jeff Davis Right Team | Right Time
Slide 136: Building to Our Long-Term Strategy
Building to Our Long-Term Strategy Optimize core technologies Technology Modernization Build next-gen applications Implement composable architecture Provide trusted data to right user Data & Analytics Integrated eco-system for real-time data End-to-end visibility for data-driven decision
Slide 137: Transforming Work With Technology Investment
Transforming Work With Technology Investment TECHNOLOGY MODERNIZATION | DATA & ANALYTICS | CENTERS OF EXCELLENCE KEY DELIVERABLES Next-Gen Applications Data & Analytics Capabilities Enhanced User Experience KEY PERFORMANCE INDICATORS Corp Data & Analytics By 2024 Core Merchandise By 2025
Slide 138: Equipping Store Managers With Tools to Increase Sales
Equipping Store Managers With Tools to Increase Sales Store Effectiveness (Labor Optimization) + Optimize for stores Inventory Optimization (On-Shelf Availability) Organize IT towers to Supply Store & Merchandising Human Finance & align with business Chain Omni-channel Capital Real Estate Data & App
Slide 139: Transforming Work Through Technology
Transforming Work Through Technology STORE NETWORK POS & DIGITAL MERCHANDISING SUPPLY CHAIN HR MANAGEMENT REAL ESTATE FINANCE Modernize store Better shopper Increase on-shelf DC capacity and Help HR & Payroll Scale to future Improve connectivity experience and availability and increase on-shelf supp
Slide 140: Summary of Benefits Derived
Summary of Benefits Derived 1 Improve operations and customer experience • Frictionless sales experience 1 2 Data Integrity • Right products at the right time in the right place • Reduce forecast errors • Store order accuracy improvements Increase • Increase on-shelf availability Sales 2 3 3 Persona
Slide 141: Key Takeaways
Key Takeaways TECHNOLOGY Technology Modernization • Enable all facets of the business to increase sales • Support future growth strategies • Rapidly deliver application enhancements Data & Analytics • Proactively resolve for issues • Better and quicker decision making • Reduce manual intervention to
Slide 142: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 143: Jeff Davis
Jeff Davis CHIEF FINANCIAL OFFICER
Slide 144: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 145: Adding It All Up: $10+ EPS FY26
Adding It All Up: $10+ EPS FY26 Q2 & Healthy Balance Sheet Substantial Sales & & Strong Free 3-Year Targets FY23 Outlook Profit Growth Cash Flow Generation Highly Attractive Investment with Runway Beyond 2026
Slide 146: Re-Affirming FY2023 Outlook
Re-Affirming FY2023 Outlook1 PERIOD 4 COMP SALES ‘ON TRACK’ WITH Q2 OUTLOOK Q2 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.
Slide 147: Adding It All Up: Good Start to Q2
Adding It All Up: $10+ EPS FY26 Q2 & Healthy Balance Sheet Substantial Sales & & Strong Free 3-Year Targets FY23 Outlook Profit Growth Cash Flow Generation • Good Start to Q2 • Reaffirm FY23 Outlook Highly Attractive Investment with Runway Beyond 2026
Slide 148: Early Actions are Delivering Results
Early Actions are Delivering Results FORTIFY THE BASE STRATEGIC INITIATIVES YIELDING EARLY RESULTS • Wage Investments Dollar Tree ✓ Meaningful Comp Sales Acceleration • Store and DC Labor • Break the Dollar • Dollar Tree • Multi-Price Acceleration • Family Dollar • Store Repairs & Maintenance ✓ Attr
Slide 149: ‘Clear Path Forward’ Delivers Productive Store Growth
‘Clear Path Forward’ Delivers Productive Store Growth DOLLAR TREE SEGMENT Net New Store Expansion Historic Comp Sales Growth (2019) 9.0% 348 341 311 131 -44 -37 -56 -53 2.3% 2.2% 2.2% FY 19 FY 20 FY 21 FY 22 FY 23 FY 26 FY 19 FY 20 FY 21 FY 22 Sales Per Selling Square Foot Key Drivers: Forward Comp
Slide 150: ‘Clear Path Forward’ Delivers Margin Stability while Expanding Dollars
‘Clear Path Forward’ Delivers Margin Stability while Expanding Dollars DOLLAR TREE SEGMENT Gross Margin Key Drivers: Forward Gross Margin 37.5% 35.5% – 37.5% ~36% 34.7% 34.3% 33.1% FY19 FY20 FY21 FY22 FY23 Base Freight / Merchandising Multi-Price FY26 Supply Chain Operating Margin Key Drivers: Forwa
Slide 151: ‘Clear Path Forward’ Delivers Productive Store Growth
‘Clear Path Forward’ Delivers Productive Store Growth FAMILY DOLLAR SEGMENT Net New Store Expansion Historic Comp Sales Growth 333 300 225 250 170 156 -64 -88 -152 -200 -200 10.5% -423 1.4% -0.1% 2.4% FY 19 FY 20 FY 21 FY 22 FY 23 FY 26 FY19 FY20 -0.1% FY21 FY22 Sales Per Selling Square Foot Key Dri
Slide 152: ‘Clear Path Forward’ Delivers Margin Expansion and Dollar Growth
‘Clear Path Forward’ Delivers Margin Expansion and Dollar Growth FAMILY DOLLAR SEGMENT Gross Margin Key Drivers: Forward Gross Margin 26% – 28% 26.5% 24% – 25% 25.2% 24.3% 24.4% FY19 FY20 FY21 FY22 FY23 Merchandising Freight & RE & Other FY26 Base Supply Chain Operating Margin* Key Drivers: Forward
Slide 153: Adding It All Up: $10+ EPS FY26
Adding It All Up: $10+ EPS FY26 Q2 & Healthy Balance Sheet Substantial Sales & & Strong Free 3-Year Targets FY23 Outlook Profit Growth Cash Flow Generation • Good Start to Q2 • Net New Stores • Reaffirm FY23 Outlook • Comp Store • Sales Productivity • Gross Margin • Operating Margin Highly Attractiv
Slide 154: Financial Strength
Financial Strength LOW LEVERAGE WITH SUBSTANTIAL ACCESS TO LIQUIDITY | MANAGEABLE DEBT MATURITIES Liquidity $1,151 $1,454 $1,496 $1,496 $1,113 $1,417 $985 $872 $539 $643 2019 2020 2021 2022 4/30/2023 Cash & Cash Equivalents Undrawn Revolver Availability Senior Note Maturity Schedule Leverage & Fixed
Slide 155: Business Investments Remain Elevated
Business Investments Remain Elevated POST FY26 EXPECT TO MODERATE TO MORE EFFICIENT MAINTENANCE LEVEL UNLOCKING WORKING CAPITAL TO HELP FUND ELEVATED SPEND Capital Expenditures Capital Expenditures ~$2.3B $ Spend ~$2.3B Composition Average Average ~$2B ~$2B ~$2B ~$2B FY ‘26+ Continued reduction: • R
Slide 156: Cash Available for Capital Allocation (FY24 – FY26)
Cash Available for Capital Allocation (FY24 – FY26) SIGNIFICANT FREE CASH FLOW GENERATION ADDITIONAL CASH AVAILABLE THROUGH DEBT ISSUANCE WHILE MAINTAINING BBB DEBT RATING ~$10B Target Leverage2 2.5-3.0x ~$3.5B ~($6.5B) 1. Free cash flow is a non-GAAP financial measure and may not represent the amou
Slide 157: Adding It All Up: $10+ EPS FY26
Adding It All Up: $10+ EPS FY26 Q2 & Healthy Balance Sheet Substantial Sales & & Strong Free 3-Year Targets FY23 Outlook Profit Growth Cash Flow Generation • Good Start to Q2 • Net New Stores • Ample Liquidity • Reaffirm FY23 Outlook • Comp Store • Manageable Debt Maturities • Sales Productivity • S
Slide 158: Three-Year Targets
Three-Year Targets FISCAL 2026 FISCAL 2026 Net New Store Growth • Dollar Tree MSD% • Family Dollar LSD – MSD% Comp Store Growth • Dollar Tree MSD% • Family Dollar MSD% Gross Margin • Dollar Tree 35.5% – 37.5% • Family Dollar 26% – 28% Operating Profit Margin • Dollar Tree 14% – 15% • Family Dollar 5
Slide 159: Additional Runway Beyond 2026
Additional Runway Beyond 2026 • FY26 only reflects partial realization of latent potential across both banners • Additional runway exists beyond 2026: ✓ Continued iteration of Dollar Tree multi-price and continued Family Dollar transformation likely provides at least several years of above-trend com
Slide 160: Adding It All Up: $10+ EPS FY26
Adding It All Up: $10+ EPS FY26 Healthy Balance Sheet 3-Year Targets Substantial Sales & Q2 & FY23 Outlook & Strong Free Profit Growth (FY26E) Cash Flow Generation • Good Start to Q2 • Net New Stores • Ample Liquidity • New Store Growth • Reaffirm FY23 Outlook • Comp Store • Manageable Debt Maturiti
Slide 161: Key Takeaways
Key Takeaways ADDING IT ALL UP • Compelling merchandising strategies and other enabling initiatives drive accelerated sales productivity across Dollar Tree and Family Dollar segments • Accelerating Gross Profit dollar expansion • Significant improvements in operating efficiency delivered through Sto
Slide 162: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 163: Dollar Tree, Inc.
Dollar Tree, Inc. Improving Sales Extending the Operate with Developing Adding It Productivity & Multi-Price Excellence & Technology All Up: Enhancing Journey Accelerate and Supply $10+ EPS FY26 Margins Growth Chain Larry Gatta Rick McNeely Mike Creedon Mike Kindy Jeff Davis Bobby Aflatooni Right Te
Slide 164: Building Out Our Long-Term Strategy
Building Out Our Long-Term Strategy 2023 IMPERATIVES & FOCUS AREAS DRIVE PRODUCTIVE IMPROVE OPERATING TRANSFORM WORK WITH SALES GROWTH EFFICIENCY TECH INVESTMENT Enhanced Sales Margin Expansion Core Protection & Modernization Customer Focus Productivity Enablement Data & Analytics Compelling Assortm
Slide 165: Our Culture Journey
Our Culture Journey REFRESHED VALUES ARE THE FOUNDATION FOR TRANSFORMATION Live up to Create an Show up, speak Take pride in Do the right commitments and environment up and take exceeding thing to honor own the results where people feel initiative to expectations to company and distinctly valued sol
Slide 166: Inspiring Belonging
Inspiring Belonging A DIVERSE TEAM THAT REFLECTS THE COMMUNITIES WE SERVE BOARD 36% BOARD 18% EXECUTIVES 24% EXECUTIVES 27% PEOPLE LEADERS 70% PEOPLE LEADERS 40% WOMEN PEOPLE WORKFORCE 67% OF COLOR WORKFORCE 55%
Slide 167: Key Takeaways
Key Takeaways • Family Dollar is fixable (no structural barriers) • There are years of runway of above steady-rate comps that will help close a meaningful portion of the productivity gap to our best-in-class peer • Dollar Tree has an exciting path to continue increasing profit / store as it makes co
Slide 168: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.
Slide 169: Next Level
Next Level OUR CLEAR PATH FORWARD
Slide 170: Next Level
Next Level OUR CLEAR PATH FORWARD # DOLLAR TREE. FAMILY DOLLAR.