Dollar Tree, Inc. Reports Results for the Third Quarter Fiscal 2025
- Diluted Earnings per Share (EPS) from Continuing Operations of $1.20
- Adjusted Diluted EPS from Continuing Operations of $1.21
- Completed $1.5 Billion of Share Repurchases Year-to-Date
- Introducing Fourth Quarter Fiscal 2025 Outlook: 4% to 6% Comparable Store Net Sales Growth and $2.40 to $2.60 Adjusted EPS from Continuing Operations
- Revising Full-Year Fiscal 2025 Comparable Store Net Sales Growth Outlook Range to 5.0% to 5.5% and Net Sales Outlook Range to $19.35 to $19.45 Billion
- Increasing Full-Year Fiscal 2025 Adjusted EPS from Continuing Operations Outlook Range to $5.60 to $5.80 to Reflect Updated Operating Outlook and Year-to-Date Share Repurchases
Chesapeake, VA — Dollar Tree reported financial results for its third quarter ended November 1, 2025.
“Our multi-price strategy drove strong momentum across our business in the third quarter and helped deliver an all-time record Halloween season. Today’s Dollar Tree is a preferred destination for a wide range of shoppers – whether they rely on us for everyday essentials, appreciate a fast and easy trip, or enjoy the excitement of discovering something unexpected,” said Mike Creedon, Chief Executive Officer. “With 85 percent of our assortment priced at two dollar or less, we continue to deliver exceptional value, while our multi-price assortment allows us to offer even more high-quality products and great gift options for the holidays. I’m incredibly proud of our team for delivering such a standout performance this quarter. And as we head into peak holiday season, we’re ready to bring even more value, convenience, and discovery to our growing base of loyal customers.”
Additional Business Highlights
- Opened 106 new Dollar Tree stores
- Converted approximately 646 stores to the Dollar Tree 3.0 multi-price format
- Year to date generated $958.5 million of net cash provided by operating activities from continuing operations and $88.2 million of free cash flow from continuing operations
|
Third Quarter 2025 Key Operating Results (unaudited) (from continuing operations unless otherwise noted) |
|||||
|
(Compared to same period fiscal 2024) |
|
Q3 Fiscal 2025 |
|
Change |
|
|
|
|
|
|
|
|
|
Net Sales |
|
$4.7B |
|
9.4% |
|
|
Same-Store Net Sales Growth – Dollar Tree |
|
4.2% |
|
|
|
|
Operating Income |
|
$343M |
|
3.8% |
|
|
Diluted EPS |
|
$1.20 |
|
11.1% |
|
|
Adjusted Operating Income1 |
|
$345M |
|
4.1% |
|
|
Adjusted Diluted EPS |
|
$1.21 |
|
12.0% |
|
|
1 |
Adjustments for the third quarter of 2025 are strategic review costs. See “Reconciliation of Non-GAAP Financial Measures” below for detailed schedules of these charges. |
||||
Third Quarter Results
Results for the third quarter ended November 1, 2025, are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of the Dollar Tree segment and corporate, support and other.
Also, unless otherwise noted, all comparisons are to the prior year’s third quarter, ended November 2, 2024, which has also been adjusted to reflect the Family Dollar segment as discontinued operations.
Net sales increased 9.4% to $4.7 billion. Same-store net sales increased by 4.2%, driven by a 4.5% increase in average ticket and a 0.3% decline in traffic.
Gross profit increased 10.8% to $1.7 billion and gross margin increased 40 basis points to 35.8%. The expansion in gross margin was primarily driven by improved mark-on from pricing initiatives, lower domestic and import freight costs, favorable sales mix, partially offset by higher tariff costs, markdowns, and shrink.
Selling, general and administrative expenses increased 140 basis points to 29.2% of total revenue. The increase was driven primarily by higher store payroll in support of pricing initiatives and from wage increases, general liability claims costs, and depreciation from store investments, partially offset by lower stock compensation, corporate payroll, and sales leverage.
On an adjusted basis, which does not include strategic review costs, selling, general and administrative costs increased 130 basis points to 29.1% of total revenue.
Transition services agreement income, net was $23.8 million for services provided between Dollar Tree and Family Dollar following the sale.
Operating income increased 3.8% to $343.3 million and operating margin decreased 40 basis points to 7.2%. Adjusted operating income increased 4.1% to $345.3 million and adjusted operating margin decreased 30 basis points to 7.3%.
The Company’s effective tax rate was 23.9% compared to 23.2%.
Income from continuing operations was $244.6 million and diluted earnings per share from continuing operations was $1.20. On an adjusted basis, which does not include strategic review costs, income from continuing operations was $246.1 million and diluted EPS was $1.21.
The Company repurchased 4.1 million shares for $399.0 million, including applicable excise tax. Subsequent to quarter end, it purchased an additional 1.7 million shares for $176 million.
As of November 1, 2025, the Company had $2.0 billion remaining under the $2.5 billion repurchase authorization, $594.8 million of cash and cash equivalents, $620.0 million of commercial paper notes outstanding, and no borrowings under its credit facilities.
Year-to-Date Results
Results for the 39 weeks ended November 1, 2025, are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of our Dollar Tree segment and corporate, support and other.
Also, unless otherwise noted, all comparisons are to the prior 39 weeks ended November 2, 2024, which also reflect the Family Dollar segment as discontinued operations.
Net sales increased 11.0% to $13.9 billion. Dollar Tree’s same-store sales increased 5.4%, driven by a 1.8% increase in traffic and a 3.6% increase in average ticket.
Gross profit increased 11.8% to $4.9 billion and gross margin increased by 30 basis points to 35.3%.
Selling, general and administrative expenses were 28.7% of total revenue, compared to 27.7%. On a non-GAAP basis, selling, general and administrative expenses were 28.6% of total revenue, compared to 27.6%.
Operating income increased 3.2% to $958.4 million and operating income margin decreased 50 basis points to 6.9%. Adjusted operating income increased 3.7% to $969.1 million and adjusted operating income margin decreased 50 basis points to 6.9%.
The Company’s effective tax rate was 25.1% compared to 23.8%.
Income from continuing operations was $713.6 million and diluted earnings per share from continuing operations was $3.42. Adjusted income from continuing operations was $675.1 million and adjusted diluted earnings per share from continuing operations was $3.24.
The Company repurchased 15.0 million shares for $1.3 billion, including applicable excise tax. Subsequent to quarter end, we purchased an additional 1.7 million shares for $176 million.
Fiscal 2025 Outlook
Our full-year fiscal 2025 outlook is presented on a continuing operations basis, reflecting the operations of our Dollar Tree segment, which includes corporate, support and other. A quarterly and full-year reclassification of our 2024 results into continuing, discontinued, and consolidated operations was included as supplemental schedules in the Company’s fourth quarter fiscal 2024 earnings press release, published on March 26, 2025.
Additionally, our outlook assumes that the level of tariffs in place today, December 3, 2025, remains in effect for the balance of the fiscal year. It further assumes that we will be able to mitigate most of the incremental margin pressure from higher tariffs and other input costs.
The Company is updating its full-year fiscal 2025 net sales from continuing operations outlook to be in the range of $19.35 billion to $19.45 billion, based on an updated comparable store net sales growth range of 5.0% to 5.5%.
The Company is updating its prior adjusted diluted EPS from continuing operations outlook range to $5.60 to $5.80 to reflect the current operating environment and year-to-date share repurchases. Additional share repurchases are not included in the updated outlook.
Fourth Quarter 2025 Outlook
For the fourth quarter fiscal 2025, the Company expects its net sales from continuing operations to be in the range of $5.4 billion to $5.5 billion, based on comparable store net sales growth of 4.0% to 6.0%. Additionally, it expects adjusted diluted EPS from continuing operations to be in the range of $2.40 to $2.60.
press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.
DLTR-E
DOLLAR TREE, INC.
FINANCIAL TABLES
T-1: Condensed Consolidated Income Statements
T-2: Condensed Consolidated Balance Sheets
T-3: Condensed Consolidated Statements of Cash Flows
T-4: Segment Information
T-5: Dollar Tree Segment Information
T-6: Reconciliation of Non-GAAP Financial Measures
T-7: Reconciliation of Non-GAAP Financial Measures – Continuing Operations
T-7a: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)
T-7b: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)
T-8: Reconciliation of Non-GAAP Financial Measures – Free Cash Flow
| T-1 | ||||||||||||||||
| DOLLAR TREE, INC. | ||||||||||||||||
| Condensed Consolidated Income Statements | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||||||
| Revenues | ||||||||||||||||
| Net sales |
$ |
4,746.3 |
|
$ |
4,338.0 |
|
$ |
13,949.6 |
|
$ |
12,569.1 |
|
||||
| Other revenue |
|
4.7 |
|
|
3.2 |
|
|
11.5 |
|
|
9.6 |
|
||||
| Total revenue |
|
4,751.0 |
|
|
4,341.2 |
|
|
13,961.1 |
|
|
12,578.7 |
|
||||
| Expenses & other operating items | ||||||||||||||||
| Cost of sales |
|
3,045.8 |
|
|
2,803.9 |
|
|
9,029.5 |
|
|
8,167.2 |
|
||||
| Selling, general and administrative expenses |
|
1,385.7 |
|
|
1,206.6 |
|
|
4,005.0 |
|
|
3,483.1 |
|
||||
| Transition services agreement income, net |
|
23.8 |
|
|
– |
|
|
31.8 |
|
|
– |
|
||||
| Operating income |
|
343.3 |
|
|
330.7 |
|
|
958.4 |
|
|
928.4 |
|
||||
| Interest expense, net |
|
21.9 |
|
|
28.3 |
|
|
67.4 |
|
|
84.9 |
|
||||
| Other (income) expense, net |
|
0.1 |
|
|
0.1 |
|
|
(62.0 |
) |
|
0.2 |
|
||||
| Income from continuing operations before income taxes |
|
321.3 |
|
|
302.3 |
|
|
953.0 |
|
|
843.3 |
|
||||
| Provision for income taxes |
|
76.7 |
|
|
70.0 |
|
|
239.4 |
|
|
201.0 |
|
||||
| Income from continuing operations |
|
244.6 |
|
|
232.3 |
|
|
713.6 |
|
|
642.3 |
|
||||
| Income from discontinued operations, net of tax |
|
– |
|
|
1.0 |
|
|
62.8 |
|
|
23.5 |
|
||||
| Net income |
$ |
244.6 |
|
$ |
233.3 |
|
$ |
776.4 |
|
$ |
665.8 |
|
||||
| Net earnings per share: | ||||||||||||||||
| Basic from continuing operations |
$ |
1.20 |
|
$ |
1.09 |
|
$ |
3.43 |
|
$ |
2.97 |
|
||||
| Basic from discontinued operations |
|
– |
|
|
0.00 |
|
|
0.30 |
|
|
0.11 |
|
||||
| Basic per share of common stock |
$ |
1.20 |
|
$ |
1.09 |
|
$ |
3.73 |
|
$ |
3.08 |
|
||||
| Basic weighted average number of shares |
|
203.3 |
|
|
215.0 |
|
|
208.1 |
|
|
215.9 |
|
||||
| Diluted from continuing operations |
$ |
1.20 |
|
$ |
1.08 |
|
$ |
3.42 |
|
$ |
2.97 |
|
||||
| Diluted from discontinued operations |
|
– |
|
|
0.00 |
|
|
0.30 |
|
|
0.11 |
|
||||
| Diluted per share of common stock |
$ |
1.20 |
|
$ |
1.08 |
|
$ |
3.72 |
|
$ |
3.08 |
|
||||
| Diluted weighted average number of shares |
|
203.8 |
|
|
215.2 |
|
|
208.5 |
|
|
216.1 |
|
||||
| Selling, general and administrative expense rate |
|
29.2 |
% |
|
27.8 |
% |
|
28.7 |
% |
|
27.7 |
% |
||||
| Transition services agreement income, net as a percentage of total revenue |
|
0.5 |
% |
|
0.0 |
% |
|
0.2 |
% |
|
0.0 |
% |
||||
| Operating income margin |
|
7.2 |
% |
|
7.6 |
% |
|
6.9 |
% |
|
7.4 |
% |
||||
| Income from continuing operations before income taxes as percentage of total revenue |
|
6.8 |
% |
|
7.0 |
% |
|
6.8 |
% |
|
6.7 |
% |
||||
| Effective tax rate |
|
23.9 |
% |
|
23.2 |
% |
|
25.1 |
% |
|
23.8 |
% |
||||
| Income from continuing operations as percentage of total revenue |
|
5.1 |
% |
|
5.4 |
% |
|
5.1 |
% |
|
5.1 |
% |
||||
| The selling, general and administrative expense rate and operating income margin are calculated by dividing the applicable amount by total revenue. | ||||||||||||||||
| Amounts in tables above may not recalculate due to rounding. | ||||||||||||||||
| T-2 | |||||||||
| DOLLAR TREE, INC. | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (In millions) | |||||||||
| (Unaudited) | |||||||||
| November 1, 2025 |
February 1, 2025 |
November 2, 2024 |
|||||||
| ASSETS | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents |
$ |
594.8 |
$ |
1,256.5 |
$ |
478.3 |
|||
| Merchandise inventories |
|
2,859.7 |
|
2,672.0 |
|
3,002.5 |
|||
| Other current assets |
|
276.0 |
|
169.8 |
|
193.0 |
|||
| Current assets of discontinued operations |
|
– |
|
5,008.9 |
|
2,957.7 |
|||
| Total current assets |
|
3,730.5 |
|
9,107.2 |
|
6,631.5 |
|||
| Restricted cash |
|
42.5 |
|
75.7 |
|
75.1 |
|||
| Property, plant and equipment, net |
|
4,877.8 |
|
4,499.3 |
|
4,363.3 |
|||
| Operating lease right-of-use assets |
|
4,418.2 |
|
4,146.4 |
|
4,063.6 |
|||
| Goodwill |
|
422.2 |
|
421.2 |
|
422.3 |
|||
| Deferred income taxes, net |
|
2.0 |
|
260.6 |
|
5.3 |
|||
| Other assets |
|
163.1 |
|
133.6 |
|
147.7 |
|||
| Noncurrent assets of discontinued operations |
|
– |
|
– |
|
7,624.0 |
|||
| Total assets |
$ |
13,656.3 |
$ |
18,644.0 |
$ |
23,332.8 |
|||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
| Current liabilities: | |||||||||
| Short-term borrowings |
$ |
619.5 |
$ |
– |
$ |
– |
|||
| Current portion of long-term debt |
|
– |
|
1,000.0 |
|
1,000.0 |
|||
| Current portion of operating lease liabilities |
|
975.6 |
|
960.7 |
|
943.0 |
|||
| Accounts payable |
|
1,676.1 |
|
1,705.8 |
|
1,950.0 |
|||
| Income taxes payable |
|
– |
|
120.1 |
|
8.0 |
|||
| Other current liabilities |
|
618.6 |
|
574.4 |
|
543.6 |
|||
| Current liabilities of discontinued operations |
|
– |
|
4,224.9 |
|
1,968.7 |
|||
| Total current liabilities |
|
3,889.8 |
|
8,585.9 |
|
6,413.3 |
|||
| Long-term debt, net, excluding current portion |
|
2,430.7 |
|
2,431.2 |
|
2,430.0 |
|||
| Operating lease liabilities, long-term |
|
3,633.1 |
|
3,438.7 |
|
3,373.0 |
|||
| Deferred income taxes, net |
|
0.5 |
|
– |
|
964.5 |
|||
| Income taxes payable, long-term |
|
25.3 |
|
28.2 |
|
21.3 |
|||
| Other liabilities |
|
212.2 |
|
182.6 |
|
161.5 |
|||
| Noncurrent liabilities of discontinued operations |
|
– |
|
– |
|
2,333.1 |
|||
| Total liabilities |
|
10,191.6 |
|
14,666.6 |
|
15,696.7 |
|||
| Shareholders’ equity |
|
3,464.7 |
|
3,977.4 |
|
7,636.1 |
|||
| Total liabilities and shareholders’ equity |
$ |
13,656.3 |
$ |
18,644.0 |
$ |
23,332.8 |
|||
| The February 1, 2025 information was derived from the audited consolidated financial statements as of that date. | |||||||||
| T-3 | ||||||||
| DOLLAR TREE, INC. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In millions) | ||||||||
| (Unaudited) | ||||||||
| 39 Weeks Ended | ||||||||
| November 1, 2025 | November 2, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income |
$ |
776.4 |
|
$ |
665.8 |
|
||
| Income from discontinued operations, net of tax |
|
62.8 |
|
|
23.5 |
|
||
| Income from continuing operations |
$ |
713.6 |
|
$ |
642.3 |
|
||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||||||||
| Depreciation and amortization |
|
477.6 |
|
|
377.1 |
|
||
| Provision for deferred income taxes |
|
242.6 |
|
|
53.8 |
|
||
| Stock-based compensation expense |
|
46.0 |
|
|
68.8 |
|
||
| Impairments |
|
0.7 |
|
|
1.2 |
|
||
| Gain on insurance proceeds related to fixed assets |
|
(41.0 |
) |
|
– |
|
||
| Other non-cash adjustments to income from continuing operations |
|
69.7 |
|
|
(3.1 |
) |
||
| Changes in operating assets and liabilities: | ||||||||
| Merchandise inventories |
|
(236.6 |
) |
|
(535.2 |
) |
||
| Income taxes receivable |
|
(22.1 |
) |
|
– |
|
||
| Other current assets |
|
(78.1 |
) |
|
(25.1 |
) |
||
| Other assets |
|
(41.4 |
) |
|
(49.1 |
) |
||
| Accounts payable |
|
(31.3 |
) |
|
784.1 |
|
||
| Income taxes payable |
|
(121.0 |
) |
|
19.1 |
|
||
| Other current liabilities |
|
16.5 |
|
|
4.5 |
|
||
| Other liabilities |
|
26.7 |
|
|
17.3 |
|
||
| Operating lease right-of-use assets and liabilities, net |
|
(63.4 |
) |
|
(19.9 |
) |
||
| Net cash provided by operating activities of continuing operations |
|
958.5 |
|
|
1,335.8 |
|
||
| Cash flows from investing activities: | ||||||||
| Capital expenditures |
|
(870.3 |
) |
|
(1,005.7 |
) |
||
| Proceeds from sale of discontinued operations |
|
672.0 |
|
|
– |
|
||
| Cash divested from sale of discontinued operations |
|
(246.0 |
) |
|
– |
|
||
| Proceeds from insurance recoveries |
|
50.0 |
|
|
45.0 |
|
||
| Proceeds from (payments for) fixed asset disposition |
|
1.3 |
|
|
(0.8 |
) |
||
| Net cash used in investing activities of continuing operations |
|
(393.0 |
) |
|
(961.5 |
) |
||
| Cash flows from financing activities: | ||||||||
| Principal payments for long-term debt |
|
(1,000.0 |
) |
|
– |
|
||
| Debt-issuance costs |
|
(3.8 |
) |
|
– |
|
||
| Proceeds from commercial paper notes |
|
7,587.2 |
|
|
3,206.1 |
|
||
| Repayments of commercial paper notes |
|
(6,968.5 |
) |
|
(3,206.1 |
) |
||
| Proceeds from stock issued pursuant to stock-based compensation plans |
|
6.1 |
|
|
7.7 |
|
||
| Cash paid for taxes on exercises/vesting of stock-based compensation |
|
(12.5 |
) |
|
(20.6 |
) |
||
| Payments for repurchase of stock |
|
(1,312.0 |
) |
|
(400.0 |
) |
||
| Net cash used in financing activities |
|
(1,703.5 |
) |
|
(412.9 |
) |
||
| Cash flows from discontinued operations: | ||||||||
| Net cash provided by operating activities of discontinued operations |
|
343.3 |
|
|
452.4 |
|
||
| Net cash used in investing activities of discontinued operations |
|
(79.8 |
) |
|
(397.6 |
) |
||
| Net cash provided by discontinued operations |
|
263.5 |
|
|
54.8 |
|
||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
0.6 |
|
|
(0.7 |
) |
||
| Net change in cash, cash equivalents and restricted cash |
|
(873.9 |
) |
|
15.5 |
|
||
| Cash, cash equivalents and restricted cash at beginning of period |
|
1,511.2 |
|
|
757.2 |
|
||
| Cash, cash equivalents and restricted cash at end of period |
$ |
637.3 |
|
$ |
772.7 |
|
||
| T-4 | |||||||||||||||||||||||||||
| DOLLAR TREE, INC. | |||||||||||||||||||||||||||
| Segment Information | |||||||||||||||||||||||||||
| (In millions) | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||||||||||||
| Net Sales: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
4,746.3 |
|
$ |
4,338.0 |
|
$ |
13,949.6 |
|
$ |
12,569.1 |
|
|||||||||||||||
| Corporate, support and other |
|
– |
|
|
– |
|
|
– |
|
|
– |
|
|||||||||||||||
| Total net sales |
$ |
4,746.3 |
|
$ |
4,338.0 |
|
$ |
13,949.6 |
|
$ |
12,569.1 |
|
|||||||||||||||
| Other revenue: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
– |
|
$ |
0.1 |
|
$ |
– |
|
$ |
0.1 |
|
|||||||||||||||
| Corporate, support and other |
|
4.7 |
|
|
3.1 |
|
|
11.5 |
|
|
9.5 |
|
|||||||||||||||
| Total other revenue |
$ |
4.7 |
|
$ |
3.2 |
|
$ |
11.5 |
|
$ |
9.6 |
|
|||||||||||||||
| Total Revenue: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
4,746.3 |
|
$ |
4,338.1 |
|
$ |
13,949.6 |
|
$ |
12,569.2 |
|
|||||||||||||||
| Corporate, support and other |
|
4.7 |
|
|
3.1 |
|
|
11.5 |
|
|
9.5 |
|
|||||||||||||||
| Total revenue |
$ |
4,751.0 |
|
$ |
4,341.2 |
|
$ |
13,961.1 |
|
$ |
12,578.7 |
|
|||||||||||||||
| Cost of sales: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
3,045.8 |
|
64.2 |
% |
$ |
2,803.9 |
|
64.6 |
% |
$ |
9,029.5 |
|
64.7 |
% |
$ |
8,167.2 |
|
65.0 |
% |
|||||||
| Corporate, support and other |
|
– |
|
– |
|
|
– |
|
– |
|
|
– |
|
– |
|
|
– |
|
– |
|
|||||||
| Total cost of sales |
$ |
3,045.8 |
|
64.2 |
% |
$ |
2,803.9 |
|
64.6 |
% |
$ |
9,029.5 |
|
64.7 |
% |
$ |
8,167.2 |
|
65.0 |
% |
|||||||
| Gross profit: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
1,700.5 |
|
35.8 |
% |
$ |
1,534.1 |
|
35.4 |
% |
$ |
4,920.1 |
|
35.3 |
% |
$ |
4,401.9 |
|
35.0 |
% |
|||||||
| Corporate, support and other |
|
– |
|
– |
|
|
– |
|
– |
|
|
– |
|
– |
|
|
– |
|
– |
|
|||||||
| Total gross profit |
$ |
1,700.5 |
|
35.8 |
% |
$ |
1,534.1 |
|
35.4 |
% |
$ |
4,920.1 |
|
35.3 |
% |
$ |
4,401.9 |
|
35.0 |
% |
|||||||
| Selling, general and administrative expenses: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
1,245.5 |
|
26.2 |
% |
$ |
1,069.0 |
|
24.6 |
% |
$ |
3,575.4 |
|
25.6 |
% |
$ |
3,072.5 |
|
24.4 |
% |
|||||||
| Corporate, support and other1 |
|
140.2 |
|
3.0 |
% |
|
137.6 |
|
3.2 |
% |
|
429.6 |
|
3.1 |
% |
|
410.6 |
|
3.3 |
% |
|||||||
| Total selling, general and administrative expenses |
$ |
1,385.7 |
|
29.2 |
% |
$ |
1,206.6 |
|
27.8 |
% |
$ |
4,005.0 |
|
28.7 |
% |
$ |
3,483.1 |
|
27.7 |
% |
|||||||
| Transition services agreement income, net: | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
– |
|
0.0 |
% |
$ |
– |
|
0.0 |
% |
$ |
– |
|
0.0 |
% |
$ |
– |
|
0.0 |
% |
|||||||
| Corporate, support and other1 |
|
23.8 |
|
0.5 |
% |
|
– |
|
0.0 |
% |
|
31.8 |
|
0.2 |
% |
|
– |
|
0.0 |
% |
|||||||
| Total transition services agreement income, net |
$ |
23.8 |
|
0.5 |
% |
$ |
– |
|
0.0 |
% |
$ |
31.8 |
|
0.2 |
% |
$ |
– |
|
0.0 |
% |
|||||||
| Operating income (loss): | |||||||||||||||||||||||||||
| Dollar Tree |
$ |
455.0 |
|
9.6 |
% |
$ |
465.2 |
|
10.7 |
% |
$ |
1,344.7 |
|
9.6 |
% |
$ |
1,329.5 |
|
10.6 |
% |
|||||||
| Corporate, support and other1 |
|
(111.7 |
) |
(2.4 |
%) |
|
(134.5 |
) |
(3.1 |
%) |
|
(386.3 |
) |
(2.8 |
%) |
|
(401.1 |
) |
(3.2 |
%) |
|||||||
| Total operating income |
$ |
343.3 |
|
7.2 |
% |
$ |
330.7 |
|
7.6 |
% |
$ |
958.4 |
|
6.9 |
% |
$ |
928.4 |
|
7.4 |
% |
|||||||
| 1Corporate, support and other SG&A expenses, transition services agreement income, net and operating loss shown as a percentage of total revenue for continuing operations | |||||||||||||||||||||||||||
| Amounts in tables above may not recalculate due to rounding. | |||||||||||||||||||||||||||
| T-5 | |||||||||||||||
| DOLLAR TREE, INC. | |||||||||||||||
| Dollar Tree Segment Information | |||||||||||||||
| (Unaudited) | |||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||
| Store Count: | |||||||||||||||
| Beginning |
9,148 |
|
8,627 |
|
|
8,881 |
|
|
8,415 |
|
|||||
| New stores |
106 |
|
249 |
|
|
360 |
|
|
492 |
|
|||||
| Stores converted from Family Dollar (a) |
30 |
|
– |
|
|
71 |
|
|
8 |
|
|||||
| Closings |
(15 |
) |
(8 |
) |
|
(43 |
) |
|
(47 |
) |
|||||
| Ending |
9,269 |
|
8,868 |
|
|
9,269 |
|
|
8,868 |
|
|||||
| Selling Square Footage (in millions) |
82.5 |
|
78.3 |
|
|
82.5 |
|
|
78.3 |
|
|||||
| Growth Rate (Square Footage) |
5.4 |
% |
8.9 |
% |
|
5.4 |
% |
|
8.9 |
% |
|||||
| 52 Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | ||||||||||||||
| Sales per Square Foot (b) |
$ |
236 |
|
$ |
233 |
|
|||||||||
| (a) | Stores converted from a Family Dollar store to a Dollar Tree store are reflected in the table above when they re-opened as a Dollar Tree store. | ||||||||||||||
| (b) | Sales per square foot is calculated based on total net sales for the reporting period divided by the average selling square footage during the period. | ||||||||||||||
| 1.) | During the fourth quarter of fiscal 2023, we announced that we had initiated a comprehensive store portfolio optimization review which involved identifying stores for closure, relocation or re-bannering based on an evaluation of current market conditions and individual store performance, among other factors. In connection with this portfolio optimization review, we incurred $2.4 million of consulting, severance, and other related costs through the first three quarters of fiscal 2024, respectively. |
| 2.) | During the first quarter of fiscal 2025, the Company entered into a definitive agreement to sell the Family Dollar business after completing a strategic review of alternatives for the banner in fiscal 2024. The sale was completed on July 5, 2025. We incurred consulting, legal and other expenses totaling $2.0 million and $10.7 million in the third quarter and third quarter year-to-date, respectively, related to the sale and ongoing separation activities, including costs associated with optimizing the remaining Dollar Tree business post-divestiture. Costs associated with these activities incurred in the third quarter of fiscal 2024 totaled $1.2 million. |
| 3.) | During the first quarter of fiscal 2024, a tornado destroyed our Dollar Tree distribution center in Marietta, Oklahoma (“DC 8”). As a result of the destruction, we have incurred losses totaling $129.0 million, consisting of $70.0 million related to damaged inventory and $59.0 million related to property and equipment. These losses are fully insured and therefore not contemplated in the non-GAAP adjustments below. Since the end of the first quarter of fiscal 2024, we have received insurance proceeds totaling $120.0 million related to damaged inventory, and $100 million related to damage property, including $70.0 million in the first quarter of fiscal 2025. We recorded a gain in the first quarter of fiscal 2025 totaling $61.8 million for excess insurance proceeds received over the losses incurred, including $20 million for damaged inventory and $41.8 million for damaged property. In the second quarter of fiscal 2024, we accrued $2.2 million of severance-related costs for employees at DC 8. |
| T-7 | ||||||||||||||||
| DOLLAR TREE, INC. | ||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Continuing Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||||||
| Reconciliation of Adjusted Selling, General and Administrative Expenses – Dollar Tree Segment | ||||||||||||||||
| Selling, general and administrative expenses (GAAP) |
$ |
1,245.5 |
|
$ |
1,069.0 |
|
$ |
3,575.4 |
|
$ |
3,072.5 |
|
||||
| Deduct: Strategic review costs |
|
(0.1 |
) |
|
(1.2 |
) |
|
(4.4 |
) |
|
(1.2 |
) |
||||
| Deduct: Severance |
|
– |
|
|
– |
|
|
– |
|
|
(2.2 |
) |
||||
| Adjusted selling, general and administrative expenses (Non-GAAP) |
$ |
1,245.4 |
|
$ |
1,067.8 |
|
$ |
3,571.0 |
|
$ |
3,069.1 |
|
||||
| Adjusted selling, general and administrative expense rate (Non-GAAP) |
|
26.2 |
% |
|
24.6 |
% |
|
25.6 |
% |
|
24.4 |
% |
||||
| Reconciliation of Adjusted Operating Income – Dollar Tree Segment | ||||||||||||||||
| Operating income (GAAP) |
$ |
455.0 |
|
$ |
465.2 |
|
$ |
1,344.7 |
|
$ |
1,329.5 |
|
||||
| Add: Strategic review costs |
|
0.1 |
|
|
1.2 |
|
|
4.4 |
|
|
1.2 |
|
||||
| Add: Severance |
|
– |
|
|
– |
|
|
– |
|
|
2.2 |
|
||||
| Adjusted operating income (Non-GAAP) |
$ |
455.1 |
|
$ |
466.4 |
|
$ |
1,349.1 |
|
$ |
1,332.9 |
|
||||
| Adjusted operating income margin (Non-GAAP) |
|
9.6 |
% |
|
10.7 |
% |
|
9.7 |
% |
|
10.6 |
% |
||||
| Reconciliation of Adjusted Selling, General and Administrative Expenses, Exclusive of Transition Services Agreement Income, Net – Corporate, Support and Other | ||||||||||||||||
| Selling, general and administrative expenses (GAAP) |
$ |
140.2 |
|
$ |
137.6 |
|
$ |
429.6 |
|
$ |
410.6 |
|
||||
| Add/Deduct: Store closure costs |
|
– |
|
|
0.1 |
|
|
– |
|
|
(2.4 |
) |
||||
| Deduct: Strategic review costs |
|
(1.9 |
) |
|
– |
|
|
(6.3 |
) |
|
– |
|
||||
| Adjusted selling, general and administrative expenses, exclusive of transition services agreement income, net (Non-GAAP) |
$ |
138.3 |
|
$ |
137.7 |
|
$ |
423.3 |
|
$ |
408.2 |
|
||||
| Adjusted selling, general and administrative expense rate, exclusive of transition services agreement income, net (Non-GAAP)2 |
|
2.9 |
% |
|
3.2 |
% |
|
3.0 |
% |
|
3.2 |
% |
||||
| Reconciliation of Adjusted Selling, General and Administrative Expenses, Inclusive of Transition Services Agreement Income, Net – Corporate, Support and Other | ||||||||||||||||
| Selling, general and administrative expenses (GAAP) |
$ |
140.2 |
|
$ |
137.6 |
|
$ |
429.6 |
|
$ |
410.6 |
|
||||
| Add/Deduct: Store closure costs |
|
– |
|
|
0.1 |
|
|
– |
|
|
(2.4 |
) |
||||
| Deduct: Strategic review costs |
|
(1.9 |
) |
|
– |
|
|
(6.3 |
) |
|
– |
|
||||
| Deduct: Transition services agreement income, net |
|
(23.8 |
) |
|
– |
|
|
(31.8 |
) |
|
– |
|
||||
| Adjusted selling, general and administrative expenses, inclusive of transition services agreement income, net (Non-GAAP) |
$ |
114.5 |
|
$ |
137.7 |
|
$ |
391.5 |
|
$ |
408.2 |
|
||||
| Adjusted selling, general and administrative expense rate, inclusive of transition services agreement income, net (Non-GAAP)2 |
|
2.4 |
% |
|
3.2 |
% |
|
2.8 |
% |
|
3.2 |
% |
||||
| 2Corporate, support and other SG&A expenses and operating loss shown as a percentage of total revenue for continuing operations | ||||||||||||||||
| Amounts in tables above may not recalculate due to rounding. | ||||||||||||||||
| T-7a | ||||||||||||||||
| DOLLAR TREE, INC. | ||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Continuing Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||||||
| Reconciliation of Adjusted Operating Loss – Corporate, Support and Other | ||||||||||||||||
| Operating loss (GAAP) |
$ |
(111.7 |
) |
$ |
(134.5 |
) |
$ |
(386.3 |
) |
$ |
(401.1 |
) |
||||
| Add/Deduct: Store closure costs |
|
– |
|
|
(0.1 |
) |
|
– |
|
|
2.4 |
|
||||
| Add: Strategic review costs |
|
1.9 |
|
|
– |
|
|
6.3 |
|
|
– |
|
||||
| Adjusted operating loss (Non-GAAP) |
$ |
(109.8 |
) |
$ |
(134.6 |
) |
$ |
(380.0 |
) |
$ |
(398.7 |
) |
||||
| Adjusted operating loss margin (Non-GAAP)2 |
|
(2.3 |
%) |
|
(3.1 |
%) |
|
(2.7 |
%) |
|
(3.2 |
%) |
||||
| Reconciliation of Adjusted Selling, General and Administrative Expenses – Continuing Operations | ||||||||||||||||
| Selling, general and administrative expenses (GAAP) |
$ |
1,385.7 |
|
$ |
1,206.6 |
|
$ |
4,005.0 |
|
$ |
3,483.1 |
|
||||
| Add/Deduct: Store closure costs |
|
– |
|
|
0.1 |
|
|
– |
|
|
(2.4 |
) |
||||
| Deduct: Strategic review costs |
|
(2.0 |
) |
|
(1.2 |
) |
|
(10.7 |
) |
|
(1.2 |
) |
||||
| Deduct: Severance |
|
– |
|
|
– |
|
|
– |
|
|
(2.2 |
) |
||||
| Adjusted selling, general and administrative expenses (Non-GAAP) |
$ |
1,383.7 |
|
$ |
1,205.5 |
|
$ |
3,994.3 |
|
$ |
3,477.3 |
|
||||
| Adjusted selling, general and administrative expense rate (Non-GAAP) |
|
29.1 |
% |
|
27.8 |
% |
|
28.6 |
% |
|
27.6 |
% |
||||
| Reconciliation of Adjusted Operating Income – Continuing Operations | ||||||||||||||||
| Operating income (GAAP) |
$ |
343.3 |
|
$ |
330.7 |
|
$ |
958.4 |
|
$ |
928.4 |
|
||||
| Add/Deduct: Store closure costs |
|
– |
|
|
(0.1 |
) |
|
– |
|
|
2.4 |
|
||||
| Add: Strategic review costs |
|
2.0 |
|
|
1.2 |
|
|
10.7 |
|
|
1.2 |
|
||||
| Add: Severance |
|
– |
|
|
– |
|
|
– |
|
|
2.2 |
|
||||
| Adjusted operating income (Non-GAAP) |
$ |
345.3 |
|
$ |
331.8 |
|
$ |
969.1 |
|
$ |
934.2 |
|
||||
| Adjusted operating income margin (Non-GAAP) |
|
7.3 |
% |
|
7.6 |
% |
|
6.9 |
% |
|
7.4 |
% |
||||
| Reconciliation of Adjusted Income from Continuing Operations | ||||||||||||||||
| Income from Continuing Operations (GAAP) |
$ |
244.6 |
|
$ |
232.3 |
|
$ |
713.6 |
|
$ |
642.3 |
|
||||
| SG&A adjustments: | ||||||||||||||||
| Add/Deduct: Store closure costs |
|
– |
|
|
(0.1 |
) |
|
– |
|
|
2.4 |
|
||||
| Add: Strategic review costs |
|
2.0 |
|
|
1.2 |
|
|
10.7 |
|
|
1.2 |
|
||||
| Add: Severance |
|
– |
|
|
– |
|
|
– |
|
|
2.2 |
|
||||
| Non-operating adjustment: | ||||||||||||||||
| Deduct: Non-operating insurance gain |
|
– |
|
|
– |
|
|
(61.8 |
) |
|
– |
|
||||
| Provision for income tax adjustments |
|
(0.5 |
) |
|
(0.3 |
) |
|
12.6 |
|
|
(1.3 |
) |
||||
| Adjusted income from continuing operations (Non-GAAP) |
$ |
246.1 |
|
$ |
233.1 |
|
$ |
675.1 |
|
$ |
646.8 |
|
||||
| Adjusted income from continuing operations as percentage of total revenue (Non-GAAP) |
|
5.2 |
% |
|
5.4 |
% |
|
4.8 |
% |
|
5.1 |
% |
||||
| 2Corporate, support and other SG&A expenses and operating loss shown as a percentage of total revenue for continuing operations | ||||||||||||||||
| Amounts in tables above may not recalculate due to rounding. | ||||||||||||||||
| T-7b | ||||||||||||||||
| DOLLAR TREE, INC. | ||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Continuing Operations | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | |||||||||||||
| Reconciliation of Adjusted Diluted Earnings Per Share – Continuing Operations | ||||||||||||||||
| Diluted earnings per share – continuing operations (GAAP) |
$ |
1.20 |
|
$ |
1.08 |
|
$ |
3.42 |
|
$ |
2.97 |
|
||||
| SG&A adjustments: | ||||||||||||||||
| Add/Deduct: Store closure costs |
|
– |
|
|
(0.00 |
) |
|
– |
|
|
0.01 |
|
||||
| Add: Strategic review costs |
|
0.01 |
|
|
0.01 |
|
|
0.05 |
|
|
0.01 |
|
||||
| Add: Severance |
|
– |
|
|
– |
|
|
– |
|
|
0.01 |
|
||||
| Non-operating adjustment: | ||||||||||||||||
| Deduct: Non-operating insurance gain |
|
– |
|
|
– |
|
|
(0.30 |
) |
|
– |
|
||||
| Provision for income tax adjustments |
|
(0.00 |
) |
|
(0.00 |
) |
|
0.06 |
|
|
(0.01 |
) |
||||
| Adjusted diluted earnings per share – continuing operations (Non-GAAP) |
$ |
1.21 |
|
$ |
1.08 |
|
$ |
3.24 |
|
$ |
2.99 |
|
||||
| Reconciliation of Adjusted Effective Tax Rate – Continuing Operations | ||||||||||||||||
| Effective tax rate (GAAP) |
|
23.9 |
% |
|
23.2 |
% |
|
25.1 |
% |
|
23.8 |
% |
||||
| Add/deduct: tax impact of non-GAAP adjustments3 |
|
0.0 |
% |
|
– |
% |
|
0.0 |
% |
|
– |
% |
||||
| Consolidated adjusted effective tax rate (non-GAAP) |
|
23.9 |
% |
|
23.2 |
% |
|
25.1 |
% |
|
23.8 |
% |
||||
| 3Relates to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant tax rates. | ||||||||||||||||
| Amounts in tables above may not recalculate due to rounding. | ||||||||||||||||
| T-8 | |||||||||||||||||
| DOLLAR TREE, INC. | |||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||
| November 1, 2025 | November 2, 2024 | November 1, 2025 | November 2, 2024 | ||||||||||||||
| Reconciliation of Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow from Continuing Operations | |||||||||||||||||
| Net cash provided by operating activities of continuing operations (GAAP) |
$ |
319.3 |
|
$ |
598.1 |
|
$ |
958.5 |
|
$ |
1,335.8 |
|
|||||
| Deduct: | |||||||||||||||||
| Capital expenditures of continuing operations |
|
(376.4 |
) |
|
(341.4 |
) |
|
(870.3 |
) |
|
(1,005.7 |
) |
|||||
| Free cash flow from continuing operations (Non-GAAP) |
$ |
(57.1 |
) |
$ |
256.7 |
|
$ |
88.2 |
|
$ |
330.1 |
|
|||||
| Net cash used in investing activities of continuing operations (GAAP) (e) |
$ |
(371.8 |
) |
$ |
(322.6 |
) |
$ |
(393.0 |
) |
$ |
(961.5 |
) |
|||||
| Net cash used in financing activities (GAAP) |
$ |
(67.5 |
) |
$ |
(248.0 |
) |
$ |
(1,703.5 |
) |
$ |
(412.9 |
) |
|||||
| (e) | Net cash used in investing activities includes capital expenditures, which is included in our computation of free cash flow. | ||||||||||||||||
