Dollar Tree(DLTR) - 2026 Q2 - Quarterly Report

PART I—FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and related disclosures Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including income statements, comprehensive income statements, balance sheets, statements of shareholders' equity, and cash flow statements, along with their accompanying notes, for the periods ended August 2, 2025 Condensed Consolidated Income Statements This section presents the company's unaudited condensed consolidated income statements for the specified periods | Metric (in millions, except per share) | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :----------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Net sales | $4,566.8 | $4,065.5 | $9,203.3 | $8,231.1 | | Total revenue | $4,570.4 | $4,068.6 | $9,210.1 | $8,237.5 | | Operating income | $231.0 | $215.8 | $615.1 | $597.7 | | Net income | $188.4 | $132.4 | $531.8 | $432.5 | | Diluted EPS (Continuing Ops) | $0.75 | $0.66 | $2.22 | $1.89 | | Diluted EPS (Total) | $0.91 | $0.62 | $2.52 | $2.00 | - Net sales increased by 12.3% to $4,566.8 million for the 13 weeks ended August 2, 2025, and by 11.8% to $9,203.3 million for the 26 weeks, compared to the prior year periods[14] - Net income increased by 42.3% to $188.4 million for the 13 weeks and by 23.0% to $531.8 million for the 26 weeks ended August 2, 2025, compared to the prior year periods[14] Condensed Consolidated Statements of Comprehensive Income This section presents the company's unaudited condensed consolidated statements of comprehensive income | Metric (in millions) | 13 Weeks Ended Aug 2, 2025 | 13 Weeks Ended Aug 3, 2024 | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Net income | $188.4 | $132.4 | $531.8 | $432.5 | | Foreign currency translation adj | $(0.4) | $(3.4) | $5.2 | $(5.4) | | Total comprehensive income | $188.0 | $129.0 | $537.0 | $427.1 | - Total comprehensive income increased by 45.7% for the 13 weeks and 25.7% for the 26 weeks ended August 2, 2025, compared to the prior year periods[16] Condensed Consolidated Balance Sheets This section presents the company's unaudited condensed consolidated balance sheets | Metric (in millions) | Aug 2, 2025 | Feb 1, 2025 | Aug 3, 2024 | | :--------------------------------------- | :---------- | :---------- | :---------- | | Total current assets | $3,613.9 | $9,107.2 | $6,092.3 | | Total assets | $13,384.9 | $18,644.0 | $22,616.6 | | Total current liabilities | $3,486.9 | $8,585.9 | $5,999.9 | | Total liabilities | $9,779.8 | $14,666.6 | $15,237.1 | | Total shareholders' equity | $3,605.1 | $3,977.4 | $7,379.5 | - Total assets decreased from $18,644.0 million at February 1, 2025, to $13,384.9 million at August 2, 2025, primarily due to the sale of the Family Dollar business[18][30] - Current assets of discontinued operations were $5,008.9 million at February 1, 2025, and $2,929.0 million at August 3, 2024, but are $0 at August 2, 2025, following the sale[18] Condensed Consolidated Statements of Shareholders' Equity This section presents the company's unaudited condensed consolidated statements of shareholders' equity | Metric (in millions) | Balance at Feb 1, 2025 | 26 Weeks Ended Aug 2, 2025 | Balance at Aug 2, 2025 | | :------------------------------- | :--------------------- | :------------------------- | :--------------------- | | Total Shareholders' Equity | $3,977.4 | | $3,605.1 | | Net income | | $531.8 | | | Repurchase of stock | | $(929.2) | | | Stock-based compensation, net | | $24.0 | | - The company repurchased $929.2 million of stock during the 26 weeks ended August 2, 2025, significantly higher than $400.0 million in the prior year period[19][21] - Total shareholders' equity decreased from $3,977.4 million at February 1, 2025, to $3,605.1 million at August 2, 2025, largely due to stock repurchases[19] Condensed Consolidated Statements of Cash Flows This section presents the company's unaudited condensed consolidated statements of cash flows | Metric (in millions) | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :---------------------------------------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities (continuing) | $639.2 | $737.7 | | Net cash used in investing activities (continuing) | $(21.2) | $(638.9) | | Net cash used in financing activities | $(1,636.0) | $(164.9) | | Net cash provided by (used in) discontinued operations| $263.5 | $(46.2) | | Net change in cash, cash equivalents & restricted cash| $(753.9) | $(112.8) | - Net cash provided by operating activities of continuing operations decreased by $98.5 million, primarily due to a decrease in accounts payable[113] - Net cash used in investing activities of continuing operations decreased by $617.7 million, driven by $668.0 million in proceeds from the Family Dollar sale and lower capital expenditures[114] - Net cash used in financing activities increased by $1,471.1 million, mainly due to the repayment of $1.0 billion Senior Notes and higher stock repurchases[115] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed notes accompanying the unaudited condensed consolidated financial statements Note 1 - Description of Business and Basis of Presentation This note describes the company's business operations and the basis for preparing the financial statements - Dollar Tree, Inc. is a leading operator of discount retail stores in the United States and Canada[26] - The sale of the Family Dollar business to 1959 Holdings, LLC was completed on July 5, 2025, for $1,007.5 million, with total cash monetized from the sale approximating $800 million[30] - The results of Family Dollar are presented as discontinued operations in the income statements, and its assets and liabilities are reflected as such in prior period balance sheets[30] [Note 2 - Recent Accounting Pronouncements