Dollar Tree (DLTR) Q4 2025 Earnings Call March 26, 2025 08:00 AM ET Company Participants Robert LaFleur - SVP - Investor RelationsMichael Creedon - CEOJeffrey Davis - Chief Financial OfficerStewart Glendinning - CTOEdward Kelly - Managing Director - Equity ResearchSimeon Gutman - Managing DirectorChuck Grom - Managing DirectorKate McShane - Managing DirectorPaul Lejuez - Managing DirectorKaren Short - Managing Director – Head of Consumer/Retail Research Conference Call Participants Michael Lasser - Equity R ...

Financial Data and Key Metrics Changes - For the full year, sales reached nearly $3.9 billion, with a comparable sales decrease of 2.7% and adjusted EPS of $5.04 [10][28] - Total sales in Q4 increased 7.8% to $1.39 billion, while comparable sales decreased 3% due to five fewer holiday shopping days [25][27] - Adjusted net income for Q4 was $192.4 million, compared to $193.8 million last year, resulting in adjusted EPS of $3.48 [27][28] Business Line Data and Key Metrics Changes - The company opened a record 228 new stores in 2024, ending the year with 1,771 stores across the U.S. [10][11] - Adjusted gross profit for Q4 was $563.2 million, an increase of 6.2% year-over-year, while adjusted gross margin decreased by approximately 60 basis points to 40.5% [26][27] Market Data and Key Metrics Changes - The company experienced a decrease in comparable transactions of 1.9% and a 1% decrease in average ticket size [25] - Inventory at the end of the year was $659.5 million, compared to $584.6 million at the end of the previous fiscal year [29][30] Company Strategy and Development Direction - The company aims to sharpen its focus on the customer, particularly targeting kids and their parents, to build long-term relationships [14][22] - Plans include simplifying pricing, focusing on $1 to $5 price points, and enhancing the product assortment to drive customer visits [20][23] - The company is also looking to expand its footprint, with a target of 3,500 stores, and plans to densify existing markets while entering new ones like the Pacific Northwest [22][84] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding consumer spending, noting no significant changes in customer behavior despite economic challenges [40] - The company is preparing for potential margin headwinds due to tariffs, estimating a 100 basis point impact for the full year [34][35] Other Important Information - The company is investing in marketing to enhance brand awareness and customer engagement, with a new Chief Marketing Officer appointed to lead these efforts [21][66] - Capital expenditures for fiscal 2025 are expected to be between $210 million and $230 million, reflecting new store openings and infrastructure investments [35] Q&A Session Summary Question: What is the overall health of the consumer? - Management is pleased with sales performance and sees no meaningful difference in customer spending habits compared to the past [40][41] Question: What is the expected impact of tariffs on margins? - The company anticipates about a 100 basis point impact from tariffs, with mitigation efforts including selective price adjustments and vendor negotiations [45][46] Question: How will the company regain lost margins? - Management indicated that improvements in shrink rates and operational efficiencies could help regain margins over time [57][58] Question: What is the status of new product development? - The company is excited about upcoming summer assortments, focusing on value and relevance for customers [62][63] Question: What is the plan for marketing spend? - The company aims to optimize marketing spend, focusing on efficient channels and enhancing customer engagement through social media [66]

Dollar General (DG) Q4 2025 Earnings Call March 13, 2025 09:00 AM ET Company Participants Kevin Walker - Vice President of Investor RelationsTodd Vasos - CEOKelly Dilts - Executive VP & CFOKate McShane - Managing DirectorSimeon Gutman - Managing Director Conference Call Participants Matthew Boss - Equity Research AnalystZhihan Ma - Senior Research AnalystRupesh Parikh - Senior Equity Research AnalystSeth Sigman - Managing Director, Senior Equity Research AnalystRobert Ohmes - Analyst Operator Good morning. ...

Dollar General (DG) Q4 2025 Earnings Call March 13, 2025 09:00 AM ET Company Participants Kevin Walker - Vice President of Investor RelationsTodd Vasos - CEOKelly Dilts - Executive VP & CFOKate McShane - Managing DirectorSimeon Gutman - Managing Director Conference Call Participants Matthew Boss - Equity Research AnalystZhihan Ma - Senior Research AnalystRupesh Parikh - Senior Equity Research AnalystSeth Sigman - Managing Director, Senior Equity Research AnalystRobert Ohmes - Analyst Operator Good morning. ...

Core Viewpoint - Target Corporation is expected to report a decline in fourth-quarter fiscal 2024 revenues and earnings, with a consensus estimate of $30.77 billion in revenues, reflecting a 3.6% year-over-year decrease, and earnings projected at $2.25 per share, indicating a 24.5% drop compared to the previous year [1][9]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $30.77 billion, down 3.6% from the same period last year [1]. - Earnings per share are projected at $2.25, suggesting a 24.5% decline year-over-year [1]. - The consensus estimate for earnings has been revised upward by a couple of cents in the past 30 days [1]. Earnings Surprise and Predictions - Target has a trailing four-quarter average earnings surprise of 5%, but in the last reported quarter, it missed the Zacks Consensus Estimate by 19.2% [3]. - The company has an Earnings ESP of +2.18% and a Zacks Rank of 3, indicating a likelihood of an earnings beat [4][5]. Sales and Traffic Growth - Target's total sales for November and December increased by 2.8% year-over-year, with comparable sales growth of 2% [7]. - The company experienced a nearly 3% increase in traffic, driven by strong performances in-store and online [7]. - Discretionary categories, particularly apparel and toys, saw significant sales increases during the holiday period [8]. Operational Challenges - Target anticipates comparable sales growth of approximately 1.5% for the fourth quarter, an improvement from earlier forecasts of flat sales [9]. - Adjusted earnings per share are expected to range from $1.85 to $2.45, down from $2.98 reported in the previous year [9]. - Rising operational expenses are likely to impact profitability, with SG&A expenses expected to deleverage by 60 basis points as a percentage of total revenues [10]. Stock Performance and Valuation - Target's stock price has declined by 8.4% in the past month, contrasting with a 0.3% rise in the Zacks Retail–Discount Stores industry [11]. - The stock trades at a forward 12-month price-to-earnings ratio of 13.23, below its five-year median of 16.32 and the industry average of 33.05, indicating attractive valuation [12]. Growth Strategy - Target's growth strategy includes enhancing digital shopping experiences, investing in stores, and expanding same-day services, positioning the company for long-term success [13][16]. - The company is adapting to evolving consumer preferences, which strengthens its growth potential [16]. Overall Outlook - While Target has capitalized on the holiday season with strong sales growth, profitability concerns due to rising operational costs remain [17]. - An earnings beat is likely, but near-term challenges may overshadow recent sales strength, making the stock a cautious consideration for investors [17].