Dollar Tree(DLTR) - 2026 Q1 - Quarterly Report

Financial Performance - The Company reported net income of $343.4 million for the 13 weeks ended May 3, 2025, compared to$300.1 million for the same period in 2024, representing an increase of approximately 14.4%[49] - Income from continuing operations was $313.5 million for the 13 weeks ended May 3, 2025, up from$267.7 million in the prior year, reflecting a growth of about 17.1%[49] - Basic earnings per share for continuing operations increased to $1.47 for the 13 weeks ended May 3, 2025, from$1.23 in the prior year, marking a growth of approximately 19.5%[49] Share Repurchase - The Company repurchased 5,926,985 shares of common stock at a cost of $436.8 million during the 13 weeks ended May 3, 2025, compared to 2,537,302 shares for$312.8 million in the same period of 2024[50] Business Transactions - The Company entered into a definitive agreement to sell the Family Dollar business for a purchase consideration of $1,007.0 million, with estimated net proceeds of approximately$800 million expected to close in the second quarter of fiscal 2025[26] - The company has entered into a definitive agreement to sell the Family Dollar business for $1,007.0 million, with estimated net proceeds of approximately$800 million expected to close in Q2 fiscal 2025[60] Insurance and Losses - The Company incurred losses of $117.0 million due to a tornado that destroyed its distribution center in Marietta, Oklahoma, but these losses were fully offset by insurance receivables[30] - The Company received insurance proceeds totaling$150.0 million in fiscal 2024 related to the tornado, including $100.0 million for damaged inventory[32] Debt and Credit Facilities - The Company has a new$1.5 billion revolving credit facility that matures on March 21, 2030, and a $1.0 billion 364-Day Revolving Credit Facility maturing on March 20, 2026[38][41] - The fair value of the Company's Senior Notes was reported at$3,147.6 million as of May 3, 2025, compared to $3,140.9 million as of February 1, 2025[47] - The company’s outstanding payment obligations under the supply chain finance program were$352.0 million as of May 3, 2025, compared to $42.4 million a year earlier[59] Segment Performance - Dollar Tree segment net sales for the 13 weeks ended May 3, 2025, were$4,636.5 million, a 11.3% increase from $4,165.6 million in the same period last year[56] - Gross profit for the Dollar Tree segment was$1,649.5 million, representing a gross margin of 35.5%, compared to $1,476.5 million and a gross margin of 35.4$522.7 million, up from $522.3 million year-over-year, indicating stable operational performance despite increased costs[56] - The Family Dollar business reported net sales of$3,309.6 million for the 13 weeks ended May 3, 2025, down from $3,460.8 million in the prior year, reflecting a decline of approximately 4.4$238.3 million for the 13 weeks ended May 3, 2025, compared to $271.4 million in the same period last year[55] Market Risks and Inflation - The company is exposed to market risks including interest rate changes, with no borrowings outstanding under credit facilities as of May 3, 2025[119] - Inflationary factors impacting the business include merchandise costs, transportation costs (including diesel fuel), store construction-related costs, and labor[120] - Significant inflationary pressures may not be fully offset through product assortment adjustments, operational efficiencies, or increases in comparable store net sales[120] - Failure to manage inflationary costs could harm the business, financial condition, and results of operations[120]