Slide 1: 2nd Quarter 2021 Supplemental Financial Information
nd 2 Quarter 2021 Supplemental Financial Information August 26, 2021
Slide 2: A Warning About Forward-Looking Statements
A WARNING ABOUT FORWARD-LOOKING STATEMENTS This presentation contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do no
Slide 3: Q2 2021 Performance Highlights
Q2 2021 Performance Highlights 13 Weeks Ended Change vs. Change vs. Jul 31, 2021 Aug 1, 2020 Aug 3, 2019 Fav (Unfav) Fav (Unfav) Consolidated Net Sales $6.34 billion 1.0% 10.4% Gross Profit $1.86 billion (2.9)% 12.9% Gross Margin 29.4% (110) bps 70 bps SG&A Expense Rate 23.0% 150 bps 100 bps Operati
Slide 4: CEO quote on team efforts and EPS
I am proud of our team’s continuing efforts, especially in our stores and distribution centers, to adapt and react in this dynamic environment to serve customers and deliver improvements in both operating margin and earnings. Our EPS of $1.23 represented increases of 12% from the prior year’s quarte
Slide 5: Q2 2021 Performance by Banner
Q2 2021 Performance by Banner Dollar Tree Family Dollar 13 Weeks Ended 13 Weeks Ended Change vs. Change vs. Change vs. Change vs. Jul 31, 2021 Jul 31, 2021 Aug 1, 2020 Aug 3, 2019 Aug 1, 2020 Aug 3, 2019 Same-Store Sales (0.2)% 2.9% (2.1)% 9.5% Net Sales $3.26 billion 2.8% 10.4% $3.08 billion (0.8)%
Slide 6: Freight Market Update
Freight Market Update • There are many, well-documented factors impacting global freight markets, including: – Increased demand leading to equipment shortages; – Equipment situated in the wrong locations; – Significant backlogs and delays in both Chinese and U.S. ports; – Outbreaks of COVID causing
Slide 7: Freight Market Update – By the Numbers
Freight Market Update – By the Numbers Change in Spot Market Rate Estimated FEU's Per $100m in Sales ‐ FY20 +20% Since Q1 2021 Earnings Report 405 347 +280% Year-Over-Year 197 184 144 +400% Since 2019 102 89 Source: Shanghai Containerized Freight Index (SCFI) A transportation executive for a carrier
Slide 8: Supply chain issues are transitory; business foundation stronger
The supply chain issues, which we are confident are transitory in nature, will take some time until the global demand and supply for equipment is rebalanced. Importantly, we believe the foundation of our business is stronger than ever. ~ Michael Witynski
Slide 9: Actions to Mitigate Impact of Freight Costs & Delayed Shipments
Actions to Mitigate Impact of Freight Costs & Delayed Shipments Using dedicated space on Chartered Vessels. Adding alternative sources of supply that do not rely on Trans-Pacific shipping. Prioritizing SKUs for import vs. alternatively sourced. Prioritizing containers based on seasonality, margi
Slide 10: Freight cost moderation as a margin tailwind
As freight costs moderate in the future, we are confident that, when paired with our team’s significant efforts to enhance our supply chain, this will become a material tailwind, contributing to better product margins. ~ Michael Witynski
Slide 11: Key Initiative: Dollar Tree Plus
Key Initiative: Dollar Tree Plus Dollar Tree Plus adds multi-price assortment to traditional everything-is-one-dollar format Currently in ~340 stores Expected to be in 500 stores by this fiscal year-end; Adding to an additional 1,500 stores in fiscal 2022; and Aiming to be in at least 5,000 st
Slide 12: Key Initiative: Combo Stores
Key Initiative: Combo Stores New Combo Stores, which average 12,300 SF as compared to Family Dollar stores averaging 9,500 SF, are delivering… 23% 31% ~120% 30% More More gross More cash Reduced sales margin dollars contribution dollars payback time >17% >40% Sales increase for renovations or reloca
Slide 13: Company Outlook
Company Outlook For Full Year Fiscal 2021, the Company expects: • Consolidated net sales of $26.19 billion to $26.44 billion. • Low single-digit increase in consolidated same-store net sales. • Diluted EPS: between $5.40 and $5.60. • Estimated freight cost impact on Diluted EPS… – For fiscal 2021: $
Slide 14: Confidence in accelerated expansion of key initiatives
We are confident in the accelerated expansion of our key initiatives, which will further leverage our brands to deliver long- term value to our shareholders. Despite the current global supply chain disruptions and the inflationary pressures, we are more excited than ever about the opportunities ahea
Slide 15: Dollar Tree
DOLLAR TREE.