Wed, Sep 4, 11:45 AM (132 days ago)
Dollar Tree, Inc. reported a modest increase in net sales for Q2 2024, rising 0.7% to $7,372.7 million, driven by a comparable store sales increase of 0.7%. However, net income fell to $132.4 million, or $0.62 per diluted share, down from $200.4 million, reflecting a decrease in operating income margin to 2.8% due to rising selling, general, and administrative expenses, which increased to 27.3% of revenue. Gross profit margin improved to 30.0% due to lower freight costs, but was offset by higher costs in consumables and occupancy. The Family Dollar segment experienced a decline in net sales by 4.0%, attributed to closures from a strategic review, while the Dollar Tree segment saw a 5.0% increase. Cash flow from operating activities rose to $1,002.6 million, supporting capital expenditures of $972.9 million. The company is navigating macroeconomic pressures, including inflation and rising interest rates, which may continue to impact performance. Future strategies include optimizing store portfolios and enhancing supply chain efficiencies.