Dollar Tree : Supplemental Financial Presentation Q3 2024

DLTR

Supplemental Financial Presentation 3rd Quarter 2024

KEY TAKEAWAYS

Third Quarter 2024

3

Comparable Store Sales Composition

Traffic, Average Ticket, Consumables, and Discretionary1

FISCAL 2023

FISCAL 2024

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

YTD

TOTAL

3.4%

7.8%

5.4%

6.3%

5.8%

1.7%

1.3%

1.8%

-

1.6%

Customer Traffic

5.5%

9.6%

7.0%

7.1%

7.4%

2.8%

1.4%

1.5%

-

1.9%

Average Ticket

(2.1%)

(1.6%)

(1.5%)

(0.7%)

(1.5%)

(1.1%)

(0.1%)

0.3%

-

(0.3%)

Consumables

6.9%

13.2%

11.1%

10.8%

10.5%

7.4%

4.7%

6.2%

-

6.4%

Discretionary

1.2%

3.9%

1.1%

3.1%

2.3%

(3.3%)

(1.9%)

(1.8%)

-

(2.5%)

FISCAL 2023

FISCAL 2024

Q1

Q2

Q3

Q4

YTD

Q1

Q2

Q3

Q4

YTD

TOTAL

6.6%

5.8%

2.0%

(1.2%)

3.2%

0.1%

(0.1%)

1.9%

-

0.6%

Customer Traffic

4.3%

3.4%

1.4%

0.7%

2.5%

0.9%

0.7%

1.8%

-

1.2%

Average Ticket

2.2%

2.3%

0.7%

(2.0%)

0.7%

(0.8%)

(0.8%)

0.0%

-

(0.5%)

Consumables

9.8%

9.5%

6.2%

2.2%

6.7%

1.4%

0.3%

1.3%

-

1.0%

Discretionary

(4.4%)

(5.7%)

(12.5%)

(12.0%)

(8.8%)

(4.7%)

(1.7%)

3.7%

-

(1.1%)

1Compared to same period in prior fiscal year

4

Dollar Tree

Consumables vs. Discretionary Mix Shift Over Time

Quarterly Results

Annual Results

YOY Consumables Mix Shift

+180

+170

+220

+210

+220

+210

+150

-90

-280

-20

+190

+190

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

48.0%

48.5%

48.4%

44.6%

50.2%

50.6%

49.9%

49.2%

48.3%

45.5%

45.3%

47.2%

50.2%

52.0%

51.5%

51.6%

55.4%

49.8%

49.4%

50.1%

50.8%

51.7%

54.5%

54.7%

52.8%

49.8%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

0.0%

2019

2020

2021

2022

2023

2024

4Q

FY 2023

FY 2024

Fiscal Year

YTD

Consumables

Discretionary (Seasonal & Variety)

5

Family Dollar

Consumables vs. Discretionary Mix Shift Over Time

Quarterly Results

Annual Results

YOY Consumables Mix Shift

+200

+230

+290

+290

+70

+60

-10

-100

-20

+140

+260

+40

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

bps

80.1%

79.6%

82.0%

79.5%

80.8%

80.2%

81.9%

77.5%

76.5%

76.3%

77.7%

80.3%

80.9%

19.9%

20.4%

18.0%

20.5%

19.2%

19.8%

18.1%

22.5%

23.5%

23.7%

22.3%

19.7%

19.1%

1Q

2Q

3Q

4Q

1Q

2Q

3Q

0.0%

2019

2020

2021

2022

2023

2024

4Q

FY 2023

FY 2024

Fiscal Year

YTD

Consumables

Discretionary (Home, Apparel, Accessories, Seasonal, Electronics)

6

Dollar Tree Consumables Market Share

% Change vs. Last Year

12.1%

9.4%

Market

DT

8.7%

9.2%

7.9%

7.5%

7.2%

4.8%

3.5%

2.7%

$ Sales

2.2%

1.1%

1.3%

2.2%

Volume

8.4%

6.4%

8.0%

4.7%

3.6%

3.7%

Unit

0.7% 0.8% 0.9%

Volume

-2.5%

-1.5%

-0.5%

-2.8%

-3.0%

Q1

Q2

Q3

Q4

FY 2023

Q1

Q2

Q3

Q4

FY 2024

Source: Nielsen Market Data in competing markets that include participating retailers across food, drug, mass, club, and dollar channels

7

Family Dollar Consumables Market Share

% Change vs. Last Year

Market FD

10.7%

11.4%

$ Sales

8.9%

7.5%

3.9%

3.8%

Volume

4.8%

2.5%

1.2%

2.0%

2.1% 2.0%

2.7% 2.4%

2.7%

0.8%

1.5%

1.2%

1.3%

0.9% 0.9%

1.1% 1.1%

0.5%

Unit

Volume

-0.8%

-2.1%

-1.8%

-2.6%

Q1

Q2

Q3

Q4

FY 2023

Q1

Q2

Q3

Q4

FY 2024

Source: Nielsen Market Data in competing markets that include participating retailers across food, drug, mass, club, and dollar channels

8

Sales per Square Foot

by Business Segment

$234 $235 $235 $233

$200 $201 $203

$220

$234

$227

$225

$220

$221

$225

$227 $223

FY 19

FY 20

FY 21

FY 22

FY 23

Dollar Tree

$216

$212

$210

$209

$210

$211

$220 $218 $218

$216

$214

$214 $212 $214 $220

$191

1Q22 2Q22 3Q22 4Q22

1Q23

2Q23 3Q23 4Q23

1Q24 2Q24 3Q24

FY 19

FY 20

FY 21

FY 22

FY 23

Dollar Tree

Family Dollar

Family Dollar

Note: Sales per square foot is calculated based on LTM net sales for the reporting period divided by the average selling square footage for the LTM period. As such, Family Dollar sales per square foot includes LTM net sales for the stores closed as part of the portfolio optimization, but those stores are not included in the period-ending selling square footage for 1Q 2024, 2Q 2024, and 3Q 2024 used to calculate average selling square footage for the LTM period.

9

Operating Margin (GAAP)

Year-Over-Year Basis Point Change

FY 2024

Q3 Trend Drivers

Q1

Q2

Q3

Prior Year - GAAP

13.6%

10.3%

12.1%

Lower freight costs

Cost of sales

10

80

60

Increased markdowns

Higher distribution costs

↓ Increased sales of higher cost consumables merchandise

↓ Increased occupancy costs due to loss of leverage from low single-digit comp

↓ Higher depreciation from store investments

Selling, general and administrative

(120)

(270)

(180)

↓ Temporary labor to support multi-price rollout

Higher utilities costs

↓ Loss of leverage due to low single-digit comp

Current Year - GAAP

12.5%

8.4%

10.7%

Variance vs. Last Year

-110 bps

-190 bps

-140 bps

Note: Figures may not foot due to rounding

10

Disclaimer

Dollar Tree Inc. published this content on December 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on December 04, 2024 at 11:31:02.643.