Slide 1: Supplemental Financial Presentation 3rd Quarter 2023
Supplemental Financial Presentation 3rd 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 Discretionary1 FISCAL 2022 FISCAL 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 TOTAL 11.2% 7.5% 8.5% 8.7% 3.4% 7.8% 5.4% Customer Traffic (3.6%) (5.8%) (5.2%) (1.1%) 5.5% 9.6% 7.0% Average Ticket 15.4% 14.2% 14.6% 10.0% (2.1%) (1.6%) (1.5%) C
Slide 4: Dollar Tree Consumables vs. Discretionary Mix Shift Over Time
Dollar Tree Consumables vs. Discretionary Mix Shift Over Time YOY Consumables Mix Shift +180 bps +170 bps +220 bps 46.2% 46.8% 46.2% 42.5% 48.0% 48.5% 48.4% 53.8% 53.2% 53.8% 57.5% 52.0% 51.5% 51.6% 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 2022 FY 2023 Discretionary Consumables Discretionary Categories = Seasonal &
Slide 5: Family Dollar Consumables vs. Discretionary Mix Shift Over Time
Family Dollar Consumables vs. Discretionary Mix Shift Over Time YOY Consumables Mix Shift +200 bps +230 bps +290 bps 78.1% 77.3% 79.1% 76.6% 80.1% 79.6% 82.0% 21.9% 22.7% 20.9% 23.4% 19.9% 20.4% 18.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY 2022 FY 2023 Discretionary Consumables Discretionary Categories = Home, App
Slide 6: 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% 7.5% $ Sales 6.3% 6.9% Volume 3.5% 4.8% 2.5% 2.7% 1.5% 0.8% Unit -1.2% -1.7% -1.9% -1.8% -2.2% -2.1% -2.6% Volume -4.3% -6.3% -5.8% -8.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2022 FY 2023
Slide 7: Dollar Tree Taking Market Share
Dollar Tree Taking Market Share % Change vs. Last Year - Consumables Market DT 8.4% 6.4% 3.6% Unit Volume -2.1% -2.6% -2.6% -2.5% -3.3% -2.8% -3.0% -7.2% -9.5% -11.3% -11.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2022 FY 2023 Source: Nielsen Market Data 7
Slide 8: Operating Margin
Operating Margin Year-Over-Year Basis Point Change FY 2023 Q3 Trend Drivers Q1 Q2 Q3 Prior Year 20.2% 15.4% 13.3% ↑ Lower freight costs COGS Merchandise Cost1 (420) (275) 55 ↓ Product cost inflation, unfavorable product mix COGS Occupancy 5 35 15 ↑ Sales leverage COGS Distribution (80) (75) (70) ↓ H
Slide 9: Operating Margin
Operating Margin Year-Over-Year Basis Point Change FY 2023 Q3 Trend Drivers Q1 Q2 Q3 Prior Year 2.9% 1.7% (0.6%) ↑ Lower freight costs COGS Merchandise Cost1 (85) 5 140 ↓ Product mix COGS Occupancy 40 15 0 ↔ COGS Distribution (20) (5) (15) ↓ Higher capitalized costs in prior period from inventory in
Slide 10: Updated Outlook: Fourth Quarter and Full-Year Fiscal 2023
Updated Outlook Fourth Quarter and Full-Year Fiscal 2023 Fourth Quarter Fiscal Year Sales - Enterprise $8.6B - $8.8B $30.5B - $30.7B Comparable Sales - Dollar Tree MSD MSD Comparable Sales - Family Dollar -1% to +1% LSD Comparable Sales - Enterprise LSD MSD Selling Square Footage Growth - 3.0% - 3.5
Slide 11: Updated Outlook: Full-Year Fiscal 2023
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 12: Fiscal 2023 New Store Growth
Fiscal 2023 New Store Growth Back-End Weighted 197 178 – 228 127 123 118 112 107 102 Q1 Q2 Q3 Q4 2022 (464 new stores) 2023E (600-650 new stores) 12
Slide 13: Sales per Square Foot by Banner
Sales per Square Foot by Banner $227 $225 $221 $220 $216 $218 $218 $212 $216 $210 $214 $211 $210 $209 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Dollar Tree Family Dollar 13
Slide 14: Store Count by Format
Store Count by Format 8,114 8,272 2,350 Traditional: Dollar Tree stores primarily at a fixed-price point of 4,500 $1.25 per item DT Plus: Dollar Tree stores that include $3 and $5 Plus merchandise in their assortment 5,764 3,772 3Q22 3Q23 DT Plus Traditional 14