10-Q - DOLLAR TREE, INC. (0000935703) (Filer)

Wed, Jun 5, 3:18 PM (46 days ago)

Dollar Tree, Inc. reported a 4.2% increase in net sales for Q1 2024, reaching $7.63 billion, driven by a 1.0% increase in comparable store sales and $457.4 million from non-comparable stores. Gross profit margin rose slightly to 30.8%, primarily due to lower freight costs, though partially offset by higher costs for consumable merchandise and increased shrinkage. Selling, general, and administrative expenses increased by 6.5%, leading to a 50 basis point rise in the expense rate to 25.3%, attributed to temporary labor costs, higher depreciation, and severance expenses. Operating income remained stable at $420.6 million, with a slight margin decrease to 5.5%. Net income was $300.1 million, or $1.38 per diluted share, up from $299.0 million, or $1.35 per diluted share, in the same period last year. The company repurchased 2.5 million shares at a cost of $312.8 million and announced a strategic review of the Family Dollar segment, potentially including a sale or spin-off. Cash flow from operations decreased to $695.7 million, while capital expenditures rose to $472.2 million. The company holds $1.04 billion in its repurchase authorization.