Dollar Tree(DLTR) - 2026 Q1 - Quarterly Results

Financial Performance - Dollar Tree's net sales increased by 11.3% to $4.6 billion compared to the same period in fiscal 2024[10] - Same-store net sales growth was 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket[10] - Diluted earnings per share (EPS) from continuing operations was $1.47, representing a 19.5% increase year-over-year[12] - Total revenue for the 13 weeks ended May 3, 2025, was $4,639.7 million, an increase of 11.3% compared to $4,168.9 million for the same period in 2024[32] - Net income for the same period was $343.4 million, up 14.4% from $300.1 million year-over-year[32] - Basic earnings per share from continuing operations increased to $1.47, compared to $1.23 in the prior year, reflecting a growth of 19.5%[32] - Gross profit increased to $988.2 million, resulting in a gross margin of 29.9%, up from 25.2% in the prior year[45] - Operating income rose significantly to $291.9 million, with an operating margin of 8.8%, compared to just 1.1% in the previous year[45] Shareholder Returns - The company completed over $500 million in share repurchases year-to-date, with an additional 780 thousand shares purchased for $67.5 million after the quarter-end[6][13] - Adjusted diluted EPS from continuing operations outlook is updated to a range of $5.15 to $5.65, reflecting the impact of year-to-date share repurchases[19] Store Operations - The company opened 148 new Dollar Tree stores and converted approximately 500 stores to the 3.0 multi-price format[6] - The company opened 148 new stores during the quarter, bringing the total store count to 9,016, a net increase of 496 stores year-over-year[42] - The company closed 25 stores during the quarter, resulting in an ending store count of 7,591, down from 7,877 a year earlier[45] Cash Flow and Liquidity - The company generated $379 million of net cash from operating activities and $130 million of free cash flow from continuing operations[7] - Cash and cash equivalents at the end of the period were $1,311.2 million, an increase from $691.7 million at the same time last year[38] - Free cash flow from continuing operations was $129.7 million, down from $188.7 million in the prior year[62] Outlook and Guidance - The full-year fiscal 2025 net sales outlook is reiterated at a range of $18.5 billion to $19.1 billion, with comparable store net sales growth expected between 3% to 5%[18] Expenses and Margins - Selling, general and administrative expenses increased to $1,268.6 million, representing 27.3% of total revenue, compared to 26.3% in the previous year[32] - The operating income margin decreased to 8.3% from 9.2% year-over-year, indicating a slight decline in operational efficiency[32] - Sales per square foot decreased to $222 from $227 year-over-year, reflecting a decline of 2.2%[45][46] Tax and Other Income - The effective tax rate for the quarter was 25.9%, up from 24.6% in the prior year[32] - The effective tax rate for continuing operations was 25.9%, with an adjusted effective tax rate of 26.1%[59] - Insurance proceeds of $220 million were received related to losses from a tornado that destroyed a distribution center, resulting in a gain of $61.8 million recognized in the first quarter of fiscal 2025[52] - The company incurred $3.7 million in consulting and other expenses related to the strategic review of the Family Dollar business[52] Strategic Initiatives - The sale of Family Dollar is on track to close during the second quarter of fiscal 2025, with estimated net proceeds of approximately $800 million[15]