Dollar Tree(US:DLTR)2025-12-03 11:31Financial Performance - For the 13 weeks ended November 1, 2025, net income was $244.6 million, compared to $233.3 million for the same period in 2024, representing a year-over-year increase of 0.6%[55]. - Basic earnings per share for continuing operations increased to $1.20 for the 13 weeks ended November 1, 2025, up from $1.09 in the prior year, reflecting a growth of 10.1%[55]. - The Dollar Tree segment reported net sales of $4,746.3 million for the 13 weeks ended November 1, 2025, a 9.4% increase from $4,338.0 million in the same period of 2024[62]. - Gross profit for the Dollar Tree segment was $1,700.5 million for the 13 weeks ended November 1, 2025, compared to $1,534.1 million for the same period in 2024, marking a 10.8% increase[62]. - The Dollar Tree segment's operating income for the 13 weeks ended November 1, 2025, was $455.0 million, compared to $465.2 million for the same period in 2024, reflecting a decrease of 2.5%[62]. - For the 39 weeks ended November 1, 2025, Family Dollar reported net sales of $5,625.5 million, with total revenue of $5,630.0 million[70]. - The operating income for Family Dollar for the 39 weeks ended November 1, 2025, was $480.0 million, while the income from discontinued operations, net of tax, was $62.8 million[70]. Capital Expenditures - Capital expenditures for the Dollar Tree segment were $383.8 million for the 13 weeks ended November 1, 2025, compared to $338.3 million for the same period in 2024, indicating a rise of 13.4%[63]. - Capital expenditures related to discontinued operations were $393.0 million for the 39 weeks ended November 2, 2024, compared to $77.8 million for the same period in 2025[72]. Insurance and Losses - The Company recorded losses of $117.0 million due to a tornado that destroyed its Dollar Tree distribution center in Marietta, Oklahoma, which were fully offset by insurance receivables[37]. - The Company received insurance proceeds totaling $150.0 million in fiscal 2024, including a gain of $30.0 million for excess insurance proceeds over losses incurred for damaged inventory[38]. Debt and Credit Facilities - As of November 1, 2025, the Company had no borrowings outstanding under its new $1.5 billion Five-Year Credit Facility and $1.0 billion 364-Day Revolving Credit Facility[46][47]. - As of November 1, 2025, the Company had $620.0 million principal amount of notes outstanding under its commercial paper program, with a weighted-average interest rate of 4.2%[49]. - The fair value of the Company's Senior Notes as of November 1, 2025, was $2,230.6 million, compared to a carrying value of $2,435.7 million[54]. - The Company has increased the size of its commercial paper program to allow for issuance up to $2.5 billion, effective November 10, 2025[50]. - The Company has no borrowings outstanding under its credit facilities as of November 1, 2025, with $620.0 million principal amount of notes outstanding under the commercial paper program[132]. Family Dollar Business - The Company completed the sale of the Family Dollar business for a purchase consideration of $1,007.5 million, with net proceeds of approximately $800 million after adjustments[31]. - The Company has continuing involvement with Family Dollar under a transition services agreement for 18 months following the sale[31]. - The Company has guaranteed lease obligations for 120 Family Dollar stores amounting to approximately $88.0 million for the first year following the sale[68]. - The Company recorded $23.8 million and $31.8 million of net income from transition services with Family Dollar for the 13 and 39 weeks ended November 1, 2025, respectively[68]. - The fair value of the Family Dollar business was estimated using the expected sale price negotiated with the buyer[71]. - As of November 1, 2025, the total assets of discontinued operations for Family Dollar were valued at $5,008.9 million, while total liabilities were $4,224.9 million[71]. - The Company recorded a valuation allowance of $3,438.8 million against the assets held for sale due to fair value being lower than carrying value[71]. Legal and Regulatory Matters - The Company has assessed its legal proceedings and does not believe they will have a material effect on its financial condition or liquidity[40]. - The Company is currently evaluating the impact of recently issued accounting standards, including ASU 2024-03 and ASU 2025-06, on its consolidated financial statements[34][35]. Share Repurchase - The company repurchased 4,050,414 shares of common stock at a cost of $399.0 million during the 13 weeks ended November 1, 2025[56]. - The company had $2.0 billion remaining under the $2.5 billion share repurchase authorization as of November 1, 2025[56]. Supply Chain Finance - The company’s obligations under the supply chain finance program were $342.9 million as of November 1, 2025[67]. Sales by Merchandise Category - The Dollar Tree segment's net sales by merchandise category for consumables were $2,350.7 million, representing 49.5% of total net sales for the 13 weeks ended November 1, 2025[64].