Core Viewpoint - Dollar Tree Inc. (DLTR.US) experienced a significant drop of nearly 12% in early trading, reaching a two-month low of $98 following the release of its second-quarter earnings report [1] Financial Performance - The company reported a 12.3% year-over-year increase in sales, reaching $4.6 billion, which exceeded analyst expectations of $4.5 billion [1] - Adjusted earnings per share (EPS) grew by 13.2% year-over-year to $0.77, significantly surpassing analyst forecasts of $0.42 [1] Future Outlook - Due to rising tariff-related costs, the company anticipates that its adjusted EPS for the third quarter will be comparable to the same period last year, while current analyst expectations are set at $1.33, indicating a potential growth of 18.8% [1]

Core Insights - Dollar Tree reported a 12.3% year-over-year increase in sales, reaching $4.6 billion, exceeding analyst expectations of $4.5 billion [1] - Adjusted earnings per share (EPS) grew by 13.2% year-over-year to $0.77, significantly surpassing the analyst forecast of $0.42 [1] - Same-store sales increased by 6.5%, higher than the expected 5.4% [1] Financial Guidance - The company anticipates that adjusted EPS for the third quarter will be comparable to the previous year, while current analyst expectations suggest a growth of 18.8% to $1.33 [1] - Dollar Tree raised its full-year sales guidance, now expecting sales between $19.3 billion and $19.5 billion, up from the previous forecast of $18.5 billion to $19.1 billion [1] - The revised EPS guidance for the year is now projected to be between $5.32 and $5.72, compared to the earlier estimate of $5.15 to $5.65 [1]

Financial Data and Key Metrics Changes - Net sales increased by 12.3% to $4.6 billion, driven by a 6.5% comparable sales growth, which was balanced between traffic and ticket as well as consumables and discretionary items [8][20] - Adjusted EPS was $0.77, exceeding expectations, with strong performance attributed to higher sales and effective cost management [19][20] - Gross margin increased by 20 basis points to 34.4%, supported by lower merchandise costs and favorable pricing strategies [21] Business Line Data and Key Metrics Changes - Comparable sales for consumables rose by 6.7%, while discretionary items saw a 6.1% increase, indicating broad-based strength across categories [21] - The company completed 3,600 store conversions to the 3.0 format and is on track to reach approximately 5,000 by year-end [10] Market Data and Key Metrics Changes - The company added 2.4 million new customers over the last 12 months, with nearly two-thirds coming from households earning $100,000 or more [9] - The number of shoppers visiting three or more times a month increased by 11% in Q2, reflecting growing customer engagement [9] Company Strategy and Development Direction - The company aims to continue rolling out its expanded assortment to drive higher traffic and ticket, while managing costs through five mitigation levers [28] - The divestiture of Family Dollar allows the company to focus entirely on strengthening the Dollar Tree brand, enhancing decision-making and operational efficiency [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile retail environment due to elevated tariffs and cost pressures but expressed confidence in the company's ability to adapt and thrive [7][12] - The company remains cautious about consumer spending due to rising costs across the retail landscape, but is optimistic about its value proposition [76] Other Important Information - The company opened 254 new stores in the year, including 42 former Party City locations, and expects to reach a total of approximately 400 new stores by year-end [14] - A new partnership with Uber Eats was announced, aimed at reaching a younger demographic and enhancing customer accessibility [15] Q&A Session Summary Question: Concerns about consumer pushback on pricing and long-term margin risks - Management responded that customer traffic and ticket remain balanced, with strong performance across income levels, indicating that the value proposition is resonating well [34] Question: Drivers of higher ticket and pricing actions - Management noted that despite some price increases, unit performance was better than expected, suggesting customers still find value [38] Question: Guidance for the back half of the year and cost headwinds - Management explained the wide comp range is due to market volatility and rising costs, particularly in general liability claims [40][42] Question: Normalized EPS expectations - Management indicated that there are many moving parts affecting EPS, making it difficult to quantify a normalized level, but they aim to maintain gross margins [46][51] Question: Performance across income demographics - Management highlighted strong performance from both higher-income and lower-income customers, with the latter benefiting from pack sizes that help stretch budgets [54] Question: Zone pricing strategy - Management confirmed that while zone pricing remains a priority, current focus is on tariff mitigation strategies due to the volatile cost environment [67] Question: Performance of multi-price assortment - Management reported strong performance across all price points, with higher basket sizes in multi-price categories [70][72] Question: Consumer challenges and TSA outlook - Management expressed caution regarding consumer spending due to rising costs but remains confident in the company's value proposition [76][78]

Financial Data and Key Metrics Changes - Net sales increased by 12.3% to $4.6 billion, driven by a 6.5% comparable sales growth, which was balanced between traffic and ticket as well as consumables and discretionary items [8][23] - Adjusted EPS was $0.77, exceeding expectations, with adjusted operating income increasing by 7.4% to $236 million [8][27] - Gross margin increased by 20 basis points to 34.4%, aided by lower merchandise costs and favorable pricing [25] Business Line Data and Key Metrics Changes - Comparable store sales increased by 6.5%, with consumables up 6.7% and discretionary items up 6.1%, reflecting strong performance across categories [24] - The company added 2.4 million new customers over the last twelve months, with nearly two-thirds from households earning $100,000 or more [10] Market Data and Key Metrics Changes - The company experienced strong performance from middle and higher-income customers, contributing significantly to Q2 growth [10] - The number of shoppers visiting three or more times a month increased by 11% in Q2, indicating growing customer engagement [10] Company Strategy and Development Direction - The company is focused on expanding its assortment to include items at various price points, enhancing flexibility and relevance in the market [12][35] - The strategic priorities include continuing the rollout of the expanded assortment, managing costs with agility, investing in customer experience, and driving disciplined growth [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted the volatile retail environment due to elevated tariffs and cost pressures, but expressed confidence in the company's ability to adapt and thrive [6][19] - The outlook for the second half of the year includes comparable sales growth of 4% to 6% and adjusted EPS of $5.32 to $5.72, assuming current tariff rates [31] Other Important Information - The company completed the sale of Family Dollar, allowing for a sharper focus on the Dollar Tree brand [35] - A new partnership with Uber Eats was announced, aimed at reaching a younger demographic [18] Q&A Session Summary Question: Concerns about consumer pushback on pricing and long-term margin risks - Management responded that customer traffic and ticket are balanced, with strong performance across all income levels, indicating that the value proposition remains effective [41][43] Question: Drivers of higher ticket and pricing actions - Management highlighted that despite some price increases, unit performance was better than expected, showing customer acceptance [46][47] Question: Guidance for the back half of the year and cost headwinds - Management acknowledged market volatility and rising costs, particularly in general liability claims, but maintained a positive outlook for performance [51][52] Question: Normalized EPS for the full year - Management indicated that there are many moving parts affecting EPS, but they aim to maintain gross margin and manage costs effectively [58][63] Question: Performance across price points and consumer response - Management noted strong performance across all price points, with the expanded assortment driving higher basket sizes [87][90] Question: Consumer challenges and TSA outlook changes - Management expressed caution regarding consumer spending due to rising costs but remained confident in Dollar Tree's value proposition [95][100]

Financial Data and Key Metrics Changes - Net sales increased by 12.3% to $4.6 billion, driven by a 6.5% comparable sales growth, which was balanced between traffic and ticket [7][20] - Adjusted EPS was $0.77, exceeding expectations, with strong performance across all income cohorts [8][19] - Gross margin increased by 20 basis points to 34.4%, aided by lower merchandise costs and favorable pricing [22] Business Line Data and Key Metrics Changes - Comparable sales for consumables rose by 6.7%, while discretionary items increased by 6.1%, indicating broad-based performance across categories [21] - The company completed 3,600 store conversions to the 3.0 format and is on track to reach approximately 5,000 by year-end [10] Market Data and Key Metrics Changes - The company added 2.4 million new customers over the last 12 months, with two-thirds coming from households earning $100,000 or more [9] - The number of shoppers visiting three or more times a month increased by 11% in Q2, showing improved customer engagement [9] Company Strategy and Development Direction - The company aims to continue rolling out its expanded assortment to drive higher traffic and ticket, while managing costs with agility [29] - The focus is on delivering value, convenience, and discovery for customers, particularly in a volatile economic environment [17][30] Management's Comments on Operating Environment and Future Outlook - Management noted the ongoing volatility in the consumer and retail landscape due to elevated tariffs and cost pressures, but expressed confidence in the company's ability to adapt [6][12] - The outlook for the second half of the year includes comparable sales growth of 4% to 6% and adjusted EPS of $5.32 to $5.72, assuming current tariff rates [26] Other Important Information - The company has opened 254 new stores this year and is on track to meet its target of approximately 400 new stores [15] - A new partnership with Uber Eats was announced, aimed at reaching a younger demographic [16] Q&A Session Summary Question: Concerns about consumer pushback on pricing and long-term margin risks - Management responded that customer traffic and ticket remain balanced, with strong performance from higher-income customers, indicating that the value proposition is resonating well [34] Question: Drivers of higher ticket and pricing actions - Management highlighted that despite taking some price increases, unit performance was better than expected, showing that customers still find value [38] Question: Guidance for the back half of the year and cost headwinds - Management explained the wide comp range due to market volatility and rising costs in general liability claims, but remains optimistic about performance [40][42] Question: Normalized EPS for the full year - Management noted the complexity of estimating normalized EPS due to various one-time items and tariff impacts, but emphasized maintaining gross margin [46][50] Question: Performance across income demographics - Management indicated strong performance from both higher-income and lower-income customers, with a balanced basket of consumables and discretionary items [53] Question: Multi-price strategy and purchasing decisions - Management acknowledged the agility of the buying team in navigating a volatile environment and emphasized the continued focus on delivering value at various price points [58] Question: Consumer challenges and TSA outlook - Management expressed caution regarding consumer spending due to rising costs but remains confident in Dollar Tree's value proposition [74][76]

Group 1 - The core viewpoint of the articles highlights that Dollar Tree (DLTR.US) reported better-than-expected Q2 results, driven by increased consumer traffic and spending, while also raising its full-year sales and profit outlook despite a pessimistic view for Q3 [1][2] - For Q2 of fiscal year 2025, Dollar Tree's sales increased by 12.3% year-over-year to $4.6 billion, surpassing analysts' expectations of $4.5 billion; same-store sales rose by 6.5%, exceeding the expected 5.4% [1] - Adjusted operating profit grew by 7.4% to $236 million, and adjusted earnings per share increased by 13.2% to $0.77, significantly above the consensus estimate of $0.42 [1] Group 2 - The company's sales cost rose from $2.67 billion in the previous year to nearly $3 billion due to tariffs and increased discounts on certain products, with expectations of short-term challenges from fluctuating tariffs in the latter half of 2025 [2] - Dollar Tree now forecasts full-year sales between $19.3 billion and $19.5 billion, up from a previous estimate of $18.5 billion to $19.1 billion; it also expects adjusted earnings per share to be between $5.32 and $5.72, revised from $5.15 to $5.65 [2] - The company has a cautious outlook for Q3, anticipating adjusted earnings per share to be similar to the previous year, while current analyst expectations are around 18.8% [2]

Financial Performance - Adjusted diluted EPS from continuing operations was $0.77, including a $0.20 positive impact from tariff timing[6] - Dollar Tree segment gross margin expanded by 20 bps, but adjusted operating margin contracted by 20 bps[7] - Q2 2025 Dollar Tree GAAP operating margin was 8.0%, a decrease of 40 bps year-over-year; Non-GAAP operating margin was 8.1%, a decrease of 30 bps year-over-year[19, 20] - Dollar Tree sales per square foot reached $237 in Q2 2025[17] Sales and Comparable Store Sales - Dollar Tree comparable store sales increased by 6.5%, driven by a 3.0% increase in traffic and a 3.4% increase in average ticket[9] - Consumables comp increased by 6.7% and discretionary comp increased by 6.1%, the highest discretionary comp growth since Q4 2022[9] - Dollar Tree sales are projected to be between $19.3 billion and $19.5 billion for fiscal year 2025, with comparable sales growth of 4% to 6%[23] Real Estate and Store Operations - 106 new Dollar Tree stores were opened, bringing the total to 9,148 open stores[9] - 26 Family Dollar Combo stores were converted to full Dollar Tree stores, with the remaining 31 to be converted by year-end[9] - Approximately 400 new store openings are planned for fiscal year 2025[23] Capital Allocation and Balance Sheet - $145 million of YTD free cash flow from continuing operations and $666 million of cash and cash equivalents at quarter end[9] - 5.0 million shares were repurchased in Q2 for approximately $501 million, including excise tax, with an additional 0.6 million shares purchased for approximately $71 million after quarter end[9] - $1.0 billion of maturing May 2025 4.00% senior notes were paid off with cash on hand and commercial paper borrowings[9] - The sale of the Family Dollar business was completed for a purchase consideration of $1.0 billion, resulting in net proceeds of $800 million after adjustments[9]

Dollar Tree raised its outlook for 2025 as more consumers look for lower-priced goods https://t.co/U7C0lMnJsm ...

PART I—FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and related disclosures [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) 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](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) 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](index=14&type=chunk) - **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](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) 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](index=16&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) 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](index=18&type=chunk)[30](index=30&type=chunk) - 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](index=18&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) 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](index=19&type=chunk)[21](index=21&type=chunk) - **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](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) 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](index=113&type=chunk) - **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](index=114&type=chunk) - **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](index=115&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes accompanying the unaudited condensed consolidated financial statements [Note 1 - Description of Business and Basis of Presentation](index=12&type=section&id=Note%201%20-%20Description%20of%20Business%20and%20Basis%20of%20Presentation) 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](index=26&type=chunk) - 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](index=30&type=chunk) - 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](index=30&type=chunk) [Note 2 - Recent Accounting Pronouncements

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Dollar Tree reported strong Q2 sales and margin growth, completed the Family Dollar divestiture, and raised its full-year outlook, focusing on the Dollar Tree brand [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Mike Creedon emphasized strong Q2 performance and the company's renewed focus on strengthening the Dollar Tree brand post-Family Dollar sale - Dollar Tree delivered strong sales growth, margin outperformance, and market share gains in Q2 Fiscal 2025[3](index=3&type=chunk) - Following the Family Dollar sale, Dollar Tree is now a fully focused business, directing all resources towards strengthening the Dollar Tree brand[3](index=3&type=chunk) [Business Highlights](index=1&type=section&id=Business%20Highlights) Q2 Fiscal 2025 saw Dollar Tree same-store sales up 6.5%, diluted EPS of $0.75, over $1 billion in share repurchases, and an increased full-year net sales outlook Q2 Fiscal 2025 Business Highlights | Metric | Value | | :----------------------------------- | :----------------------------------- | | Dollar Tree Same-Store Net Sales (%) | +6.5% (Traffic +3.0%, Ticket +3.4%) | | Diluted EPS (Continuing Operations, $) | $0.75 | | Adjusted Diluted EPS (Continuing Operations, $) | $0.77 (includes $0.20 tariff timing impact) | | Share Repurchases (YTD, $B) | Over $1 Billion | | Full-Year FY25 Net Sales Outlook ($B) | $19.3 - $19.5 Billion | | Comparable Store Net Sales Growth Outlook (%) | 4% - 6% | | Adjusted EPS Outlook (Continuing Operations, $) | $5.32 - $5.72 | | New Dollar Tree Stores Opened (Count) | 106 | | Stores Converted to 3.0 Multi-Price Format (Count) | ~585 | | Net Cash Provided by Operating Activities (YTD, $M) | $639 Million | | Free Cash Flow (YTD, $M) | $145 Million | [Financial Performance](index=2&type=section&id=Financial%20Performance) The company reported strong Q2 financial results with increased net sales and gross margin, alongside significant capital allocation activities and year-to-date performance [Second Quarter Fiscal 2025 Results](index=2&type=section&id=Second%20Quarter%20Fiscal%202025%20Results) Q2 Fiscal 2025 saw net sales rise 12.3% to $4.6 billion, Dollar Tree same-store sales up 6.5%, and diluted EPS of $0.75, driven by margin expansion Q2 Fiscal 2025 Key Operating Results (Unaudited) | Metric | Q2 Fiscal 2025 | Change (YoY, %) | | :----------------------------------- | :------------- | :----------- | | Net Sales ($B) | $4.6B | 12.3% | | Same-Store Net Sales Growth – Dollar Tree (%) | 6.5% | | | Operating Income ($M) | $231M | 7.0% | | Diluted EPS ($) | $0.75 | 13.6% | | Adjusted Operating Income ($M) | $236M | 7.4% | | Adjusted Diluted EPS ($) | $0.77 | 13.2% | - Gross profit increased **12.9% to $1.6 billion**, and gross margin expanded **20 basis points to 34.4%**, primarily due to improved mark-on from pricing, lower domestic freight, and sales leverage, partially offset by higher tariff costs and shrink[10](index=10&type=chunk) - Selling, general and administrative expenses increased **60 basis points to 29.6% of total revenue**, driven by higher store payroll, depreciation, and incentive compensation, partially offset by lower general liability and stock compensation[11](index=11&type=chunk) - Diluted EPS from continuing operations was **$0.75**, with an adjusted diluted EPS of **$0.77**, which included approximately **$0.20** of positive impact from the timing of inventory mark-on and tariffs[14](index=14&type=chunk) [Capital Allocation & Liquidity (Q2)](index=3&type=section&id=Capital%20Allocation%20%26%20Liquidity%20%28Q2%29) Q2 capital allocation included repurchasing 5.0 million shares for $501.4 million, replenishing a $2.5 billion share repurchase authorization, and redeeming $1.0 billion in senior notes - The Company repurchased **5.0 million shares for $501.4 million** in Q2, and an additional **0.6 million shares for $71 million** subsequent to quarter end[15](index=15&type=chunk) - The Board of Directors replenished the share repurchase authorization to an aggregate amount of **$2.5 billion**[15](index=15&type=chunk) - Redeemed **$1.0 billion of 4.00% Senior Notes** on May 15, 2025[16](index=16&type=chunk) Liquidity Position as of August 2, 2025 | Metric | Amount | | :----------------------------------- | :------------- | | Remaining Share Repurchase Authorization ($B) | $2.4 Billion | | Cash and Cash Equivalents ($M) | $666.3 Million | | Commercial Paper Notes Outstanding ($M) | $300 Million | | Revolver Borrowings ($) | $0 | [Year-to-Date Fiscal 2025 Results](index=3&type=section&id=Year-to-Date%20Fiscal%202025%20Results) Year-to-date Fiscal 2025 net sales grew 11.8% to $9.2 billion, with Dollar Tree same-store sales up 5.9%, and diluted EPS from continuing operations at $2.22 Year-to-Date Fiscal 2025 Key Operating Results (Unaudited) | Metric | YTD Fiscal 2025 | Change (YoY, %) | | :----------------------------------- | :-------------- | :----------- | | Net Sales ($B) | $9.2 Billion | 11.8% | | Dollar Tree Same-Store Sales (%) | 5.9% | | | Gross Profit ($B) | $3.2 Billion | 12.3% | | Gross Margin (%) | 35.0% | +20 bps | | Operating Income ($M) | $615.1 Million | 2.9% | | Operating Income Margin (%) | 6.7% | -60 bps | | Diluted EPS (Continuing Operations, $) | $2.22 | | | Adjusted Diluted EPS (Continuing Operations, $) | $2.03 | | | Share Repurchases (YTD, Shares & $M) | 11.0 Million shares for $938.2 Million | | [Strategic Developments](index=4&type=section&id=Strategic%20Developments) Dollar Tree completed the divestiture of its Family Dollar business, generating $800 million in cash and realizing significant tax benefits [Family Dollar Divestiture](index=4&type=section&id=Family%20Dollar%20Divestiture) The Family Dollar divestiture was completed on July 5, 2025, for $1.0 billion, generating approximately $800 million in total cash and $425 million in tax benefits - Completed the sale of Family Dollar business on July 5, 2025, for a purchase consideration of **$1.0 billion**[21](index=21&type=chunk) Family Dollar Sale Proceeds | Item | Amount | | :----------------------------------- | :------------- | | Net proceeds paid at closing ($M) | $665 Million | | Proceeds to be received within 90 days ($M) | $22 Million | | Cash monetized prior to closing ($M) | $113 Million | | **Total Cash Monetized ($M)** | **~$800 Million** | | Expected Tax Benefits from Losses ($M) | ~$425 Million | - Family Dollar results are now presented as discontinued operations in financial statements, and the company has transition services agreements in place for up to **18 months**[22](index=22&type=chunk)[23](index=23&type=chunk) [Financial Outlook](index=4&type=section&id=Financial%20Outlook) The company increased its full-year fiscal 2025 net sales outlook to $19.3-$19.5 billion and provided adjusted diluted EPS guidance, while anticipating a Q2 tariff timing reversal in Q3 [Full-Year Fiscal 2025 Outlook](index=4&type=section&id=Full-Year%20Fiscal%202025%20Outlook) Full-year fiscal 2025 net sales outlook for continuing operations increased to $19.3-$19.5 billion, with adjusted diluted EPS projected between $5.32 and $5.72 - Full-year fiscal 2025 outlook is presented on a continuing operations basis, reflecting the Dollar Tree segment[24](index=24&type=chunk) - Outlook assumes current tariff levels remain in effect and the company can mitigate most incremental margin pressure from higher tariffs and other input costs[25](index=25&type=chunk) Full-Year Fiscal 2025 Outlook (Continuing Operations) | Metric | Range | | :----------------------------------- | :----------------------------------- | | Net Sales ($B) | $19.3 Billion to $19.5 Billion | | Comparable Store Net Sales Growth (%) | 4% to 6% | | Adjusted Diluted EPS ($) | $5.32 to $5.72 | [Third Quarter Fiscal 2025 Outlook](index=4&type=section&id=Third%20Quarter%20Fiscal%202025%20Outlook) The $0.20 positive timing impact on Q2 adjusted diluted EPS is expected to reverse in Q3 Fiscal 2025, leading to similar Q3 adjusted diluted EPS compared to prior year - The positive timing impact of approximately **$0.20** on adjusted diluted EPS from continuing operations is expected to reverse in Q3 Fiscal 2025[27](index=27&type=chunk) - Third quarter 2025 adjusted diluted EPS is expected to be similar to Q3 Fiscal 2024[27](index=27&type=chunk) [Corporate Information & Disclosures](index=4&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides details on investor relations, company overview, non-GAAP financial measures, forward-looking statements, and contact information [Investor Relations](index=4&type=section&id=Investor%20Relations) A conference call was held on September 3, 2025, to discuss earnings, with supplemental financial information available on the Investor Relations website - A conference call was held on September 3, 2025, to discuss earnings results, with a recorded version available for **seven days**[28](index=28&type=chunk) - Supplemental financial information for the second quarter is available on the Investor Relations portion of the Company's website[29](index=29&type=chunk) [About Dollar Tree, Inc.](index=5&type=section&id=About%20Dollar%20Tree%2C%20Inc.) Dollar Tree, Inc. is a leading North American value retailer operating over 9,000 stores across the U.S. and Canada under its namesake brands - Dollar Tree, Inc. is one of North America's largest value retailers, operating over **9,000 stores** and **18 distribution centers** across **48 U.S. states** and **five Canadian provinces**[30](index=30&type=chunk) - The company operates under the Dollar Tree and Dollar Tree Canada brands, employing approximately **150,000 associates**[30](index=30&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like adjusted SG&A and diluted EPS to provide additional insight into operating performance and liquidity, reconciled to GAAP - Dollar Tree uses non-GAAP financial measures such as adjusted SG&A, adjusted operating income, adjusted income from continuing operations, adjusted diluted EPS, adjusted effective tax rate, and free cash flow[31](index=31&type=chunk) - These non-GAAP measures are intended to provide additional information for evaluating current operating results in relation to past periods and are reconciled to GAAP in the financial tables[32](index=32&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release includes forward-looking statements on fiscal 2025 outlook, tariffs, and the Family Dollar sale, which are subject to risks and uncertainties - The press release includes forward-looking statements concerning fiscal 2025 business and financial outlook, tariff impacts, business initiatives, and the Family Dollar sale[33](index=33&type=chunk) - These statements are subject to risks and uncertainties, and the company is not obligated to publicly revise them[33](index=33&type=chunk) [Contact Information](index=5&type=section&id=Contact%20Information) Investor Relations inquiries can be directed to Robert A. LaFleur, Senior Vice President, at 757-991-5645 or via the company website - Contact for Investor Relations: Robert A. LaFleur, Senior Vice President, Investor Relations, at **757-991-5645**[34](index=34&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) This section provides detailed financial statements, including income statements, balance sheets, cash flows, segment information, and non-GAAP reconciliations [Table of Contents for Financial Tables](index=7&type=section&id=Table%20of%20Contents%20for%20Financial%20Tables) This section outlines the detailed financial statements and reconciliations, including income statements, balance sheets, cash flows, and non-GAAP measures - The financial tables include Condensed Consolidated Income Statements, Balance Sheets, Statements of Cash Flows, Segment Information, and Reconciliations of Non-GAAP Financial Measures[36](index=36&type=chunk) [Condensed Consolidated Income Statements](index=8&type=section&id=Condensed%20Consolidated%20Income%20Statements) The income statements detail financial performance for the 13 and 26 weeks ended August 2, 2025, with Family Dollar as discontinued operations Condensed Consolidated Income Statements (Continuing Operations) | Metric | 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 ($M) | $4,566.8M | $4,065.5M | $9,203.3M | $8,231.1M | | Total revenue ($M) | $4,570.4M | $4,068.6M | $9,210.1M | $8,237.5M | | Cost of sales ($M) | $2,996.7M | $2,674.2M | $5,983.7M | $5,363.3M | | Selling, general and administrative expenses ($M) | $1,350.7M | $1,178.6M | $2,619.3M | $2,276.5M | | Operating income ($M) | $231.0M | $215.8M | $615.1M | $597.7M | | Income from continuing operations ($M) | $155.5M | $142.3M | $469.0M | $410.0M | | Net income ($M) | $188.4M | $132.4M | $531.8M | $432.5M | | Diluted EPS from continuing operations ($) | $0.75 | $0.66 | $2.22 | $1.89 | | Operating income margin (%) | 5.1% | 5.3% | 6.7% | 7.3% | | Effective tax rate (%) | 25.5% | 23.5% | 25.8% | 24.2% | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheets present financial position as of August 2, 2025, showing a decrease in total assets primarily due to the Family Dollar divestiture Condensed Consolidated Balance Sheets (Selected Items) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :----------------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents ($M) | $666.3M | $1,256.5M | $380.2M | | Merchandise inventories ($M) | $2,683.4M | $2,672.0M | $2,571.4M | | Total current assets ($M) | $3,613.9M | $9,107.2M | $6,092.3M | | Property, plant and equipment, net ($M) | $4,652.4M | $4,499.3M | $4,167.3M | | Total assets ($M) | $13,384.9M | $18,644.0M | $22,616.6M | | Short-term borrowings ($M) | $299.5M | $0M | $249.8M | | Current portion of long-term debt ($M) | $0M | $1,000.0M | $1,000.0M | | Total current liabilities ($M) | $3,486.9M | $8,585.9M | $5,999.9M | | Long-term debt, net ($M) | $2,429.7M | $2,431.2M | $2,428.7M | | Total liabilities ($M) | $9,779.8M | $14,666.6M | $15,237.1M | | Shareholders' equity ($M) | $3,605.1M | $3,977.4M | $7,379.5M | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements detail movements for the 26 weeks ended August 2, 2025, showing $639.2 million from operating activities and significant impacts from the Family Dollar sale Condensed Consolidated Statements of Cash Flows (Selected Items) | Metric | 26 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 3, 2024 | | :----------------------------------- | :------------------------- | :------------------------- | | Net income ($M) | $531.8M | $432.5M | | Income from continuing operations ($M) | $469.0M | $410.0M | | Net cash provided by operating activities of continuing operations (GAAP, $M) | $639.2M | $737.7M | | Net cash used in investing activities of continuing operations ($M) | $(21.2)M | $(638.9)M | | Net cash used in financing activities ($M) | $(1,636.0)M | $(164.9)M | | Net cash provided by (used in) discontinued operations ($M) | $263.5M | $(46.2)M | | Net change in cash, cash equivalents and restricted cash ($M) | $(753.9)M | $(112.8)M | | Cash, cash equivalents and restricted cash at end of period ($M) | $757.3M | $644.4M | [Segment Information](index=15&type=section&id=Segment%20Information) This table breaks down net sales, gross profit, and operating income for the Dollar Tree segment and Corporate for 13 and 26 weeks Segment Information (13 Weeks Ended Aug 2, 2025) | Metric | Dollar Tree | Corporate, support and other | Total | | :----------------------------------- | :---------- | :--------------------------- | :------ | | Net Sales ($M) | $4,566.8M | — | $4,566.8M | | Total Revenue ($M) | $4,566.8M | $3.6M | $4,570.4M | | Gross Profit ($M) | $1,570.1M | — | $1,570.1M | | Gross Profit Margin (%) | 34.4% | — | 34.4% | | SG&A Expenses ($M) | $1,203.1M | $147.6M | $1,350.7M | | SG&A Expense Rate (%) | 26.3% | 3.2% | 29.6% | | Operating Income (Loss, $M) | $367.0M | $(136.0)M | $231.0M | | Operating Income Margin (%) | 8.0% | 3.0% | 5.1% | Segment Information (26 Weeks Ended Aug 2, 2025) | Metric | Dollar Tree | Corporate, support and other | Total | | :----------------------------------- | :---------- | :--------------------------- | :------ | | Net Sales ($M) | $9,203.3M | — | $9,203.3M | | Total Revenue ($M) | $9,203.3M | $6.8M | $9,210.1M | | Gross Profit ($M) | $3,219.6M | — | $3,219.6M | | Gross Profit Margin (%) | 35.0% | — | 35.0% | | SG&A Expenses ($M) | $2,329.9M | $289.4M | $2,619.3M | | SG&A Expense Rate (%) | 25.3% | 3.1% | 28.4% | | Operating Income (Loss, $M) | $889.7M | $(274.6)M | $615.1M | | Operating Income Margin (%) | 9.7% | 3.0% | 6.7% | [Dollar Tree Segment Information](index=17&type=section&id=Dollar%20Tree%20Segment%20Information) This section details Dollar Tree segment operational metrics, including store count, selling square footage, and sales per square foot as of August 2, 2025 Dollar Tree Segment Store Count & Square Footage | Metric | 13 Weeks Ended Aug 2, 2025 | 26 Weeks Ended Aug 2, 2025 | | :----------------------------------- | :------------------------- | :------------------------- | | Beginning Store Count (Stores) | 9,016 | 8,881 | | New stores (Count) | 106 | 254 | | Stores converted from Family Dollar (Count) | 36 | 41 | | Closings (Count) | (10) | (28) | | Ending Store Count (Stores) | 9,148 | 9,148 | | Selling Square Footage (Millions sq ft) | 81.2 | 81.2 | | Growth Rate (Square Footage, %) | 8.0% | 8.0% | | Sales per Square Foot (52 Weeks Ended Aug 2, 2025, $) | | $237 | [Reconciliation of Non-GAAP Financial Measures (Explanation)](index=18&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%28Explanation%29) This section explains the company's non-GAAP financial measures, their purpose, and the rationale for not providing forward-looking reconciliations - Non-GAAP measures are used to supplement GAAP reporting, excluding unusual expenses like strategic review costs, store closure costs, and severance, to provide a clearer view of operating performance[56](index=56&type=chunk) - Free cash flow is calculated as net cash provided by operating activities less capital expenditures, serving as an important indicator of liquidity[57](index=57&type=chunk) - A forward-looking reconciliation of projected adjusted diluted EPS to GAAP is not provided due to the inherent difficulty in predicting the occurrence and financial impact of non-GAAP adjustments[58](index=58&type=chunk) [Reconciliation of Non-GAAP Financial Measures (Detailed)](index=19&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%28Detailed%29) This detailed reconciliation adjusts GAAP figures for strategic review costs and other items to derive non-GAAP metrics for SG&A, operating income, and EPS Adjusted SG&A and Operating Income - Dollar Tree Segment (13 Weeks Ended Aug 2, 2025) | Metric | GAAP | Adjustments | Non-GAAP | | :----------------------------------- | :------- | :---------- | :------- | | SG&A expenses ($M) | $1,203.1M | $(0.7)M (Strategic review costs) | $1,202.4M | | SG&A expense rate (%) | 26.3% | | 26.3% | | Operating income ($M) | $367.0M | $0.7M (Strategic review costs) | $367.7M | | Operating income margin (%) | 8.0% | | 8.1% | Adjusted Operating Income, Income, EPS, and Tax Rate - Continuing Operations (13 Weeks Ended Aug 2, 2025) | Metric | GAAP | Adjustments | Non-GAAP | | :----------------------------------- | :------- | :---------- | :------- | | Operating income ($M) | $231.0M | $5.0M (Strategic review costs) | $236.0M | | Operating income margin (%) | 5.1% | | 5.2% | | Income from Continuing Operations ($M) | $155.5M | $5.0M (Strategic review costs), $(1.3)M (Tax impact) | $159.2M | | Diluted EPS from Continuing Operations ($) | $0.75 | $0.02 (Strategic review costs), $(0.01) (Tax impact) | $0.77 | | Effective tax rate (%) | 25.5% | — | 25.5% | Adjusted Operating Income, Income, EPS, and Tax Rate - Continuing Operations (26 Weeks Ended Aug 2, 2025) | Metric | GAAP | Adjustments | Non-GAAP | | :----------------------------------- | :------- | :---------- | :------- | | Operating income ($M) | $615.1M | $8.7M (Strategic review costs) | $623.8M | | Operating income margin (%) | 6.7% | | 6.8% | | Income from Continuing Operations ($M) | $469.0M | $8.7M (Strategic review costs), $(61.8)M (Insurance gain), $13.0M (Tax impact) | $428.9M | | Diluted EPS from Continuing Operations ($) | $2.22 | $0.04 (Strategic review costs), $(0.29) (Insurance gain), $0.06 (Tax impact) | $2.03 | | Effective tax rate (%) | 25.8% | 0.1% (Tax impact of non-GAAP adjustments) | 25.9% | [Reconciliation of Free Cash Flow](index=22&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) This reconciliation details free cash flow from continuing operations, calculated by subtracting capital expenditures from operating cash flow, totaling $145.3 million year-to-date Reconciliation of Free Cash Flow from Continuing Operations | Metric | 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 cash provided by operating activities of continuing operations (GAAP, $M) | $260.7M | $232.5M | $639.2M | $737.7M | | Deduct: Capital expenditures of continuing operations ($M) | $(245.1)M | $(347.8)M | $(493.9)M | $(664.3)M | | Free cash flow from continuing operations (Non-GAAP, $M) | $15.6M | $(115.3)M | $145.3M | $73.4M |