Q3 2024 Earnings Release Summary [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported a 3.5% increase in Q3 2024 consolidated net sales, driven by same-store sales growth and strong free cash flow generation Q3 Fiscal 2024 Performance Highlights | Metric | Value | | :--- | :--- | | Enterprise Same-Store Net Sales | +1.8% | | Dollar Tree Same-Store Net Sales | +1.8% | | Family Dollar Same-Store Net Sales | +1.9% | | Diluted EPS | $1.08 | | Adjusted Diluted EPS | $1.12 | Q3 Fiscal 2024 Key Financial Results (vs. Q3 2023) | Metric | Q3 Fiscal 2024 ($) | Change (%) | | :--- | :--- | :--- | | Consolidated Net Sales | $7.56B | +3.5% | | Operating Income | $333.4M | +10.5% | | Adjusted Operating Income | $343.2M | +13.8% | | Diluted EPS | $1.08 | +11.3% | | Adjusted Diluted EPS | $1.12 | +15.5% | - Key business activities in Q3 included: - Opening **249 new Dollar Tree** and **6 new Family Dollar stores** - Converting approximately **2,300 Dollar Tree stores** to the in-line multi-price format - Generating **$785.6 million** in net cash from operating activities and **$359.2 million** in free cash flow[5](index=5&type=chunk) [Management Commentary & Corporate Developments](index=1&type=section&id=Management%20Commentary%20%26%20Corporate%20Developments) Management emphasized accelerating Dollar Tree's growth and the ongoing strategic review of Family Dollar, alongside announcing a CFO transition and store portfolio optimization efforts - Interim CEO Mike Creedon stated the organization's top priorities are accelerating Dollar Tree segment growth, completing the Family Dollar strategic review, and unlocking shareholder value[3](index=3&type=chunk) - The company announced that CFO Jeff Davis will step down; an external search for a successor has been launched, and Mr. Davis will remain through the fiscal 2024 Form 10-K filing to ensure a smooth transition[3](index=3&type=chunk) - The formal review of strategic alternatives for the Family Dollar business, which could include a sale or spin-off, is moving forward as planned with no set deadline[18](index=18&type=chunk) - As part of the portfolio optimization review, the company has closed approximately **670 of the 970** identified underperforming Family Dollar stores as of November 2, 2024[19](index=19&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) The company achieved consolidated net sales growth and gross margin expansion in Q3, though year-to-date operating income declined due to increased SG&A expenses [Third Quarter Fiscal 2024 Results](index=2&type=section&id=Third%20Quarter%20Fiscal%202024%20Results) Q3 2024 saw consolidated net sales increase 3.5% to $7.56 billion, with gross margin expanding to 30.9% and operating income growing 10.5% Q3 2024 Financial Summary | Metric | Value ($) | Note | | :--- | :--- | :--- | | Consolidated Net Sales | $7.56 billion | +3.5% YoY | | Enterprise Same-Store Sales | +1.8% | Driven by 1.6% traffic increase | | Gross Profit | $2.34 billion | +7.6% YoY | | Gross Margin | 30.9% | Expanded 120 bps | | Operating Income | $333.4 million | +10.5% YoY | | Net Income | $233.3 million | - | | Diluted EPS | $1.08 | - | - SG&A expenses increased as a percentage of revenue to **26.6%** from **25.7%** in the prior year, primarily due to higher depreciation, professional fees for the Family Dollar review, temporary labor for the multi-price rollout, and higher utilities costs[9](index=9&type=chunk) [Year-to-Date Fiscal 2024 Results](index=3&type=section&id=Year-to-Date%20Fiscal%202024%20Results) Year-to-date fiscal 2024 consolidated net sales grew 2.8% to $22.6 billion, with gross margin expanding, despite a 5.2% decrease in operating income Year-to-Date 2024 Financial Summary | Metric | Value ($) | Note | | :--- | :--- | :--- | | Consolidated Net Sales | $22.6 billion | +2.8% YoY | | Enterprise Same-Store Sales | +1.2% | Driven by traffic increase | | Gross Profit | $6.9 billion | +5.5% YoY | | Gross Margin | 30.6% | Expanded 80 bps | | Operating Income | $957.1 million | -5.2% YoY | | Net Income | $665.8 million | - | | Diluted EPS | $3.08 | - | - The company repurchased **3.28 million shares** for **$403.6 million** during the year-to-date period[17](index=17&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company updated its full-year fiscal 2024 outlook, raising net sales forecasts and providing specific adjusted diluted EPS guidance for both the full year and Q4 [Full-Year Fiscal 2024 Outlook](index=3&type=section&id=Full-Year%20Fiscal%202024%20Outlook) Dollar Tree updated its full-year fiscal 2024 guidance, projecting consolidated net sales between $30.7 billion and $30.9 billion and adjusted diluted EPS from $5.31 to $5.51 Full-Year Fiscal 2024 Guidance | Metric | Outlook Range | | :--- | :--- | | Consolidated Net Sales | $30.7 billion to $30.9 billion | | Comparable Store Net Sales Growth | Low-single-digits | | Adjusted Diluted EPS | $5.31 to $5.51 | [Fourth Quarter 2024 Outlook](index=4&type=section&id=Fourth%20Quarter%202024%20Outlook) For Q4 2024, the company anticipates consolidated net sales between $8.1 billion and $8.3 billion, with adjusted diluted EPS projected from $2.10 to $2.30 Q4 Fiscal 2024 Guidance | Metric | Outlook Range | | :--- | :--- | | Consolidated Net Sales | $8.1 billion to $8.3 billion | | Comparable Store Net Sales Growth | Low-single-digits | | Adjusted Diluted EPS | $2.10 to $2.30 | - As of November 2, 2024, the company has approximately **$952 million** remaining under its share repurchase authorization[23](index=23&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited consolidated financial statements for Q3 and year-to-date fiscal 2024, including income statements, balance sheets, cash flows, and segment information [Condensed Consolidated Income Statements](index=6&type=section&id=Condensed%20Consolidated%20Income%20Statements) The income statement for Q3 2024 shows total revenue increased to $7.57 billion and net income rose to $233.3 million year-over-year Q3 Income Statement Highlights (in millions) | Line Item | 13 Weeks Ended Nov 2, 2024 | 13 Weeks Ended Oct 28, 2023 | | :--- | :--- | :--- | | Total Revenue | $7,568.2 | $7,314.8 | | Gross Profit (calc.) | $2,343.9 | $2,178.7 | | Operating Income | $333.4 | $301.7 | | Net Income | $233.3 | $212.0 | [Segment Information](index=7&type=section&id=Segment%20Information) Q3 2024 saw Dollar Tree segment net sales grow to $4.34 billion and remain significantly more profitable than Family Dollar, with a total of 16,590 stores Q3 2024 Net Sales by Segment (in millions) | Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | | :--- | :--- | :--- | | Dollar Tree | $4,338.0 | $4,003.8 | | Family Dollar | $3,223.7 | $3,305.3 | Q3 2024 Operating Income by Segment (in millions) | Segment | Q3 2024 Operating Income | Q3 2023 Operating Income | | :--- | :--- | :--- | | Dollar Tree | $465.2 | $482.7 | | Family Dollar | $1.6 | $(66.3) | Store Count as of November 2, 2024 | Segment | Ending Store Count | | :--- | :--- | | Dollar Tree | 8,868 | | Family Dollar | 7,722 | | **Total** | **16,590** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of November 2, 2024, total assets reached $23.33 billion, with total liabilities at $15.70 billion and shareholders' equity at $7.64 billion Balance Sheet Summary (in millions) | Account | Nov 2, 2024 | Feb 3, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $697.6 | $684.9 | | Merchandise inventories | $5,535.1 | $5,112.8 | | Total Assets | $23,332.8 | $22,023.5 | | Total Liabilities | $15,696.7 | $14,710.4 | | Total Shareholders' Equity | $7,636.1 | $7,313.1 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the 39 weeks ended November 2, 2024, net cash from operating activities was $1.79 billion, with significant cash used in investing and financing activities Year-to-Date Cash Flow Summary (in millions) | Activity | 39 Weeks Ended Nov 2, 2024 | | :--- | :--- | | Net cash provided by operating activities | $1,788.2 | | Net cash used in investing activities | $(1,359.1) | | Net cash used in financing activities | $(412.9) | | **Net increase in cash** | **$15.5** | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP to non-GAAP financial measures, detailing adjustments for items such as store closure costs and expenses related to the Family Dollar strategic review - The company uses non-GAAP measures to exclude unusual expenses, believing this is beneficial for evaluating current operating results in relation to past periods[41](index=41&type=chunk) - Significant adjustments to derive non-GAAP results include: - Costs related to the closure of approximately **630 Family Dollar stores** - Consulting and other expenses related to the formal review of strategic alternatives for the Family Dollar segment - Severance-related costs for employees at the destroyed Marietta, Oklahoma distribution center[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) Q3 2024 GAAP to Non-GAAP EPS Reconciliation | Description | Per Share Amount ($) | | :--- | :--- | | Diluted net income per share (GAAP) | $1.08 | | Store Closure Costs | $0.01 | | Strategic Review Costs | $0.04 | | Provision for income taxes on adjustments | $(0.01) | | **Adjusted diluted net income per share (Non-GAAP)** | **$1.12** |

Rebounding 20% from its 52-week low of $60 a share seen in early November, investors may be wondering if the recent rally in Dollar Tree (DLTR)  stock can continue.To that point, Dollar Tree stock still trades 50% below a one-year high of over $150 last March but has seen nice momentum ahead of its Q3 report on Wednesday, December 4.That said, Target’s (TGT)  recent plunge after reporting lackluster Q3 results may have investors on edge and will have Dollar Tree under Wall Street’s scope.  Image Source: Zac ...

Dollar Tree (DLTR) closed the latest trading day at $71.27, indicating a -0.32% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.83%.Shares of the discount retailer have appreciated by 10.61% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.95% and the S&P 500's gain of 3.11%.Market participants will be closely following ...

Wall Street analysts expect Dollar Tree (DLTR) to post quarterly earnings of $1.07 per share in its upcoming report, which indicates a year-over-year increase of 10.3%. Revenues are expected to be $7.45 billion, up 1.9% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timefram ...

Dollar Tree, Inc. (DLTR) is likely to register top and bottom-line growth when it reports third-quarter fiscal 2024 results on Dec. 4. The Zacks Consensus Estimate for revenues is pegged at $7.5 billion, indicating an improvement of 1.9% from the prior-year quarter’s figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.07 per share, indicating growth of 10.3% from the year-ago period’s figure. The conse ...

I prefer to look for GARP (growth at a reasonable price) stocks but also look for opportunities everywhere else. I don't have a specified time horizon. I invest in a stock for as long as my thesis holds true, and I get out when the facts change. In addition, I've developed market-beating algorithms with Python that have helped me find attractive investment opportunities within my own portfolio, and I have been investing since 2016.On top of that, I've worked at TipRanks as an analysis/news writer and even a ...

Dollar Tree (DLTR) closed the latest trading day at $66.77, indicating a -0.06% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq increased by 1.43%.Heading into today, shares of the discount retailer had lost 3.82% over the past month, lagging the Retail-Wholesale sector's gain of 0.58% and the S&P 500's loss of 0.54% in that time.Market participants will be closely following t ...

Dollar Tree CEO Rick Dreiling abruptly stepped down from his position at the helm of the beleaguered retail chain, citing health concerns as the reason for his resignation. "With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family," Dreiling said in a statement. Dreiling served as the discount retailer's chief executive since 2022. Analysts believed he played a key role in reviving the business. His last day on the job wa ...

Shares of discount retailer Dollar Tree Inc (NASDAQ:DLTR) are 4% higher in premarket trading, looking to open just below $70 after it announced CEO Rick Dreiling will step down after two years in the position. Chief operating officer Michael Creedon Jr. was tapped to serve as interim CEO, and the company also reiterated its guidance for the third quarter and commitment to reviewing its Family Dollar segment's strategic options.Analysts are weighing in following the news. Telsey Advisory Group downgraded DLT ...

Key Takeaways Dollar Tree shares rose Tuesday morning as markets reacted to the news that the discount retailer is changing its CEO. The company said after the bell Monday that outgoing CEO Rick Dreiling is stepping down immediately to deal with health issues. Dollar Tree also reiterated its guidance for the third quarter, and said its strategic review of a potential sale or spin-off of Family Dollar is progressing. Dollar Tree (DLTR) shares jumped Tuesday morning on news that the discount retailer is begin ...