Dollar Tree(DLTR) - 2025 Q4 - Annual Results

Financial Performance - Dollar Tree reported fourth quarter net sales of $5.0 billion, a 0.7% increase compared to the same period in fiscal 2023[11]. - Same-store net sales growth for Dollar Tree was 2.0%, driven by a 0.7% increase in traffic and a 1.3% increase in average ticket[11]. - The company experienced a diluted loss per share of$ 17.17, while diluted EPS from continuing operations was $1.86, reflecting a 23.8% decrease[5]. - Adjusted diluted EPS from continuing operations was$ 2.11, down 15.3% year-over-year[15]. - For fiscal 2025, Dollar Tree expects net sales to range from $18.5 billion to$ 19.1 billion, with comparable store net sales growth projected between 3% to 5%[24]. - The company anticipates adjusted diluted EPS from continuing operations to be between $5.00 and$ 5.50, impacted by shared services costs related to the Family Dollar business[26]. - Operating income for the fourth quarter decreased by 26.5% to $534 million, with an operating margin contraction of 390 basis points to 10.7%[15]. - Total revenue for the fiscal year 2025 was reported at$ 17,578.5 million, up from $16,781.1 million in the previous fiscal year, indicating a growth of approximately 4.75%[39]. - Operating income for the 13 weeks ended February 1, 2025, was$ 533.6 million, down from $725.6 million for the same period last year, representing a decrease of about 26.4%[39]. - The company reported a net loss of$ 3,695.9 million for the 13 weeks ended February 1, 2025, compared to a net loss of $1,709.8 million for the same period last year[39]. - Basic earnings per share from continuing operations were$ 1.86 for the 13 weeks ended February 1, 2025, down from $2.44 for the same period last year[39]. - Total revenue for the 52 weeks ended February 1, 2025, was$ 17,565.9 million, with net sales of $4,996.7 million for the 13 weeks ended February 1, 2025[67]. - Operating income for the 52 weeks ended February 1, 2025, was$ 2,088.6 million, with an operating income margin of 11.9%[67]. - Income from continuing operations (GAAP) for the 13 weeks ended February 1, 2025, was $400.2 million, down from$ 532.4 million for the same period last year[65]. - Adjusted income from continuing operations (Non-GAAP) for the 13 weeks ended February 1, 2025, was $454.8 million, representing 9.1% of total revenue, compared to 11.0% for the same period last year[65]. - The company reported a total of 215.7 million weighted average shares for basic earnings per share calculation[71]. Store Operations - Dollar Tree opened 33 new stores in the fourth quarter, bringing total openings for fiscal 2024 to 525[13]. - The company opened 525 new stores during the 52 weeks ended February 1, 2025, while closing 71 stores, resulting in a net increase in store count to 8,881[47]. - The selling square footage for Dollar Tree increased to 78.4 million square feet, reflecting a growth rate of 7.3% compared to the previous year[47]. Financial Position - Cash and cash equivalents increased to$ 1,256.5 million as of February 1, 2025, compared to $425.2 million as of February 3, 2024[41]. - Total current assets rose to$ 9,107.2 million as of February 1, 2025, compared to $6,132.7 million a year earlier, showing a significant increase[41]. - Total liabilities decreased slightly to$ 14,666.6 million as of February 1, 2025, from $14,710.4 million as of February 3, 2024[41]. Tax and Expenses - The effective tax rate for the company was 25.9%, compared to 23.7% in the previous year[16]. - The effective tax rate for the 13 weeks ended February 1, 2025, was 25.9%, compared to 23.7% for the same period last year[39]. - Selling, general and administrative expenses for the 13 weeks ended February 1, 2025, were$ 1,120.7 million, with an adjusted expense rate of 22.3%[67]. - Dollar Tree's selling, general and administrative expenses (SG&A) increased to $4,832.4 million for the 52 weeks ended February 1, 2025, compared to$ 4,245.2 million the previous year, representing a rise of 13.8%[45]. Strategic Decisions - The company entered into a definitive agreement to sell the Family Dollar business for $1,007 million, with estimated net proceeds of approximately$ 804 million[4]. - The company is currently in the process of selling Family Dollar, which is subject to closing conditions and adjustments to the purchase price[34]. - The Family Dollar segment reported a total revenue of $13,267.1 million for the 52 weeks ended February 1, 2025, down from$ 13,822.7 million the previous year, indicating a decline of 4.0%[51]. - The company incurred $33.8 million in consulting and other expenses related to the strategic review of the Family Dollar business segment, concluding with a decision to sell the segment[56]. - The company plans to continue focusing on market expansion and new product development to drive future growth[86]. Impairments and Losses - A$ 3,438.7 million loss was recorded due to the classification of the Family Dollar business as held for sale, with a $1,400.0 million impairment charge for the Family Dollar trade name[56]. - The company reported a significant impairment of intangible assets and goodwill amounting to$ 1,890.5 million for the 52 weeks ended February 1, 2025[79]. - Non-operating held for sale loss was recorded at $3,438.8 million for the 52 weeks ended February 1, 2025[79]. - The company reported a loss from discontinued operations of$ 4,072.6 million for the 52 weeks ended February 1, 2025[76]. - The company experienced a total operating loss (GAAP) of $1,824.8 million for the 52 weeks ended February 1, 2025[79]. Cash Flow - Free cash flow is highlighted as an important liquidity indicator, calculated as net cash provided by operating activities less capital expenditures[58]. - Total net cash provided by operating activities for the 52 weeks ended February 1, 2025, was$ 2,193.3 million, compared to $2,400.8 million in the prior year[94]. - Free cash flow from continuing operations for the 13 weeks ended February 1, 2025, was$ 562.8 million, down from $707.8 million in the previous year[94].