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Dollar Tree, Inc. Reports Results for the First Quarter Fiscal 2025

Provided By Business Wire

Last update: Jun 4, 2025

Dollar Tree, Inc. (NASDAQ: DLTR) today reported financial results for its first quarter ended May 3, 2025.

“Our strong first quarter performance underscores the progress we’ve made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,” said Mike Creedon, Chief Executive Officer. “History has shown that we have the resilience to emerge stronger from periods of economic uncertainty and in today’s rapidly evolving environment, we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide.”

Additional Business Highlights

  • Opened 148 new Dollar Tree stores
  • Converted approximately 500 stores to our 3.0 multi-price format
  • Generated $379 million of net cash provided by operating activities from continuing operations and $130 million of free cash flow from continuing operations

First Quarter 2025 Key Operating Results (unaudited)

(from continuing operations unless otherwise noted)

 

(Compared to same period fiscal 2024)

 

Q1

Fiscal 2025

 

 

Change

 

 

 

 

 

Net Sales

 

$4.6B

 

11.3%

 

 

 

 

 

Same-Store Net Sales Growth – Dollar Tree

 

5.4%

 

 

 

 

 

 

 

Operating Income

 

$384M

 

0.6%

Diluted EPS

 

$1.47

 

19.5%

 

 

 

 

 

Adjusted Operating Income1

 

$388M

 

1.4%

Adjusted Diluted EPS

 

$1.26

 

2.4%

1 Adjustments for the first quarter of 2025 are non-operating insurance gain and strategic review costs. See “Reconciliation of Non-GAAP Financial Measures” below for detailed schedules of these charges.

First Quarter Results

Results for the first quarter, ended May 3, 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 first quarter, ended May 4, 2024, which also have been adjusted to reflect the Family Dollar segment as discontinued operations.

Net sales increased 11.3% to $4.6 billion. Same-store net sales increased 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket.

Gross profit increased 11.7% to $1.6 billion and gross margin expanded 20 basis points to 35.6%. The expansion in gross margin was driven primarily by lower freight, improved mark-on and lower occupancy costs due to sales leverage, partially offset by increased distribution, shrink, and markdown costs.

Selling, general and administrative expenses increased 100 basis points to 27.3% of total revenue. The increase was driven primarily by higher depreciation expense from store investments, higher store payroll from wage increases, general liability claims, and utilities costs, partially offset by lower stock compensation, lower temporary labor related to multi-price store conversions, and sales leverage.

Operating income increased 0.6% to $384.1 million and operating margin contracted 90 basis points to 8.3%. Adjusted operating income increased 1.4% to $387.8 million and adjusted operating margin contracted 80 basis points to 8.4%.

The Company’s effective tax rate was 25.9% compared to 24.6%. Adjusted effective tax rate was 26.1% compared to 24.6%.

Income from continuing operations was $313.5 million and diluted earnings per share from continuing operations was $1.47. On an adjusted basis, which does not include non-operating insurance gains or strategic review costs, net income was $269.7 million and diluted EPS was $1.26.

The Company repurchased 5.9 million shares for $436.8 million, including applicable excise tax. Subsequent to quarter end, we have purchased an additional 780 thousand shares for $67.5 million.

As of May 3, 2025, the Company had approximately $519.7 million remaining under its $2.5 billion share repurchase authorization, $1.0 billion of cash and cash equivalents, no borrowings under our revolvers and no commercial paper outstanding.

On May 15, 2025 – subsequent to the end of the first quarter – we leveraged a combination of available cash and our commercial paper program to redeem our $1.0 billion 4.00% Senior Notes. As of June 2, 2025, we had $550 million of commercial paper notes outstanding.

Sale of Family Dollar

On March 25, 2025, the Company entered into a definitive agreement to sell the Family Dollar business to Brigade and Macellum for a purchase consideration of $1,007.0 million, subject to a number of adjustments, including with respect to working capital and net indebtedness. The closing of the transaction is subject to satisfaction of customary closing conditions, including receipt of US antitrust approval, which has subsequently been granted. Net proceeds are estimated to total approximately $800 million. Additionally, we expect the economic impact of tax benefits from losses on the sale to be approximately $350 million. The deal is expected to close in the second quarter of fiscal 2025.

The results of Family Dollar are presented in Dollar Tree Inc.’s financial results as discontinued operations in the Condensed Consolidated Financial Statements for all periods presented and prior periods have been adjusted to conform to the current presentation. Unless otherwise noted, all amounts and disclosures included in this press release reflect only continuing operations. For additional information, please refer to Note 10 in our Quarterly Report on Form 10-Q filed on June 4, 2025.

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, June 4, 2025, remains in effect for the balance of the fiscal year. It further assumes that we will be able mitigate most of the incremental margin pressure from higher tariffs and other input costs.

The Company continues to expect its full-year fiscal 2025 net sales from continuing operations to be in the range of $18.5 billion to $19.1 billion, based on comparable store net sales growth in the range of 3% to 5%.

The company is updating its prior adjusted diluted EPS from continuing operations outlook range to $5.15 to $5.65 to reflect the effect of our year-to-date share repurchases. Additional share repurchases are not included in the updated outlook.

Our outlook for adjusted diluted EPS from continuing operations includes SG&A costs associated with shared services that are provided to the Family Dollar business. These costs will be incurred for the entirety of fiscal year 2025. Under a Transition Services Agreement (TSA) that would begin with the anticipated closing of the sale in the second quarter of fiscal 2025, the Family Dollar buyer will reimburse the Company for the cost of providing these services. Because Dollar Tree will bear the full year of the costs to support Family Dollar but only expects to receive offsetting reimbursement income in the second half of the year, the Company’s full-year earnings will be negatively impacted by approximately $0.30 to $0.35, with that impact concentrated in the first two quarters of the fiscal year.

Second Quarter 2025 Outlook

Given trends to date and our expectations for the balance of the quarter, we believe second quarter comparable net sales growth will be towards the higher end of our full-year outlook range of 3% to 5%.

Over the balance of fiscal 2025, the company expects to mitigate the earnings impact of the cost pressures it faces, including higher tariffs. In the near-term, it does expect to see some earnings volatility based on the timing of the various inputs and outputs to the company’s financial results. As such, we expect second quarter adjusted EPS from continuing operations could be down as much as 45 to 50 percent year-over-year before re-accelerating in the third and fourth quarters to meet our full-year earnings outlook.

Conference Call Information

On Wednesday, June 4, 2025, the Company will host a conference call to discuss its earnings results at 8:00 a.m. Eastern Time. The telephone number for the call is (877) 407-3943 or (201) 689-8855. A recorded version of the call will be available for seven days after the call and may be accessed by dialing (877) 660-6853 or (201) 612-7415. The access code is 13753956. A webcast of the call is also accessible through the Investor Relations portion of the Company’s website.

Supplemental financial information for the first quarter is available on the Investor Relations portion of the Company’s website, at https://corporate.dollartree.com/investors.

Dollar Tree, a Fortune 200 Company, operated 16,607 stores across 48 states and five Canadian provinces as of May 3, 2025. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada. To learn more about the Company, visit www.DollarTree.com.

Use of Non-GAAP Financial Measures

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). From time-to-time, the Company supplements the reporting of its financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP financial measures we have disclosed include adjusted selling, general and administrative expenses; adjusted selling, general and administrative expense rate; adjusted operating income (loss); adjusted operating income (loss) margin; adjusted income from continuing operations; adjusted diluted earnings per share; and adjusted effective tax rate, in each case with respect to our continuing operations; and free cash flow.

Reconciliations of the non-GAAP financial measures to the corresponding amounts prepared in accordance with GAAP appears in the tables under the heading “Reconciliation of Non-GAAP Financial Measures” below. These tables provide additional information regarding the adjusted measures.

A WARNING ABOUT FORWARD-LOOKING STATEMENTS: Our press release contains "forward-looking statements" as that term is used in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they address future events, developments or results and do not relate strictly to historical facts. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements include, without limitation, statements preceded by, followed by or including words such as: “believe”, “anticipate”, “expect”, “intend”, “plan”, “view”, “target” or “estimate”, “may”, “will”, “should”, “predict”, “possible”, “potential”, “continue”, “strategy”, and similar expressions. For example, our forward-looking statements include statements relating to our business and financial outlook for fiscal 2025, including without limitation our expectations regarding net sales, comparable store sales and adjusted diluted earnings per share for the second fiscal quarter and full fiscal year 2025, and various factors that are expected to impact our quarterly and annual results of operations for fiscal 2025; the direct and indirect impacts of current and potential tariffs and other trade-related measures and our plans to mitigate those impacts; our plans and expectations regarding our business, including the impact of various initiatives, investments, and reviews on the company’s performance and prospects for long-term growth; and our other plans, objectives, expectations (financial and otherwise) and intentions. Our forward-looking statements also include statements regarding our pending sale of Family Dollar and the related TSA, which sale is subject to closing conditions and a number of adjustments to the purchase price, and which may not be completed in a timely fashion or at all, disrupt our business operations, be more difficult or costly than expected or fail to achieve the anticipated benefits. These statements are subject to risks and uncertainties. For a discussion of the risks, uncertainties and assumptions that could affect our future events, developments or results, you should carefully review the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed March 26, 2025, our Form 10-Q for the most recently ended fiscal quarter and other filings we make from time to time with the Securities and Exchange Commission. We are not obligated to release publicly any revisions to any forward-looking statements contained in this press release to reflect events or circumstances occurring after the date of this report and you should not expect us to do so.

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: Family Dollar (reported as discontinued operations)

T-7: Reconciliation of Non-GAAP Financial Measures

T-8: Reconciliation of Non-GAAP Financial Measures – Continuing Operations

T-8a: Reconciliation of Non-GAAP Financial Measures – Continuing Operations (continued)

T-9: 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

May 3, 2025

May 4, 2024

Revenues
Net sales

$

4,636.5

 

$

4,165.6

 

Other revenue

 

3.2

 

 

3.3

 

Total revenue

 

4,639.7

 

 

4,168.9

 

Expenses
Cost of sales

 

2,987.0

 

 

2,689.1

 

Selling, general and administrative expenses

 

1,268.6

 

 

1,097.9

 

Operating income

 

384.1

 

 

381.9

 

Interest expense, net

 

22.7

 

 

26.7

 

Other (income) expense, net

 

(61.7

)

 

0.1

 

Income from continuing operations before income taxes

 

423.1

 

 

355.1

 

Provision for income taxes

 

109.6

 

 

87.4

 

Income from continuing operations

 

313.5

 

 

267.7

 

Income from discontinued operations, net of tax

 

29.9

 

 

32.4

 

Net income

$

343.4

 

$

300.1

 

Net earnings per share:
Basic from continuing operations

$

1.47

 

$

1.23

 

Basic from discontinued operations

 

0.14

 

 

0.15

 

Basic per share of common stock

$

1.61

 

$

1.38

 

Basic weighted average number of shares

 

213.6

 

 

217.8

 

 
Diluted from continuing operations

$

1.47

 

$

1.23

 

Diluted from discontinued operations

 

0.14

 

 

0.15

 

Diluted per share of common stock

$

1.61

 

$

1.38

 

Diluted weighted average number of shares

 

213.9

 

 

218.1

 

 
Selling, general and administrative expense rate

 

27.3

%

 

26.3

%

Operating income margin

 

8.3

%

 

9.2

%

Income from continuing operations before income taxes as percentage of total revenue

 

9.1

%

 

8.5

%

Effective tax rate

 

25.9

%

 

24.6

%

Income from continuing operations as percentage of total revenue

 

6.8

%

 

6.4

%

 

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)
 
 
 

May 3,

2025

February 1,

2025

May 4,

2024

ASSETS
Current Assets:
Cash and cash equivalents

$

1,007.4

$

1,256.5

$

390.6

Merchandise inventories

 

2,704.0

 

 

2,672.0

 

 

2,456.9

 

Other current assets

 

179.8

 

 

169.8

 

 

265.2

 

Current assets of discontinued operations

 

4,705.5

 

 

5,008.9

 

 

2,969.5

 

Total current assets

 

8,596.7

 

 

9,107.2

 

 

6,082.2

 

Restricted cash

 

76.7

 

 

75.7

 

 

73.2

 

Property, plant and equipment, net

 

4,587.9

 

 

4,499.3

 

 

3,947.0

 

Operating lease right-of-use assets

 

4,205.6

 

 

4,146.4

 

 

3,699.9

 

Goodwill

 

422.6

 

 

421.2

 

 

422.8

 

Deferred income taxes, net

 

268.7

 

 

260.6

 

 

8.7

 

Other assets

 

133.0

 

 

133.6

 

 

98.8

 

Noncurrent assets of discontinued operations

 

-

 

 

-

 

 

7,777.6

 

Total assets

$

18,291.2

 

$

18,644.0

 

$

22,110.2

 

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt

$

1,000.0

 

$

1,000.0

 

$

-

 

Current portion of operating lease liabilities

 

971.3

 

 

960.7

 

 

901.4

 

Accounts payable

 

1,572.0

 

 

1,705.8

 

 

1,305.3

 

Income taxes payable

 

239.9

 

 

120.1

 

 

82.9

 

Other current liabilities

 

549.9

 

 

574.4

 

 

512.5

 

Current liabilities of discontinued operations

 

3,903.7

 

 

4,224.9

 

 

1,954.2

 

Total current liabilities

 

8,236.8

 

 

8,585.9

 

 

4,756.3

 

Long-term debt, net, excluding current portion

 

2,428.8

 

 

2,431.2

 

 

3,427.5

 

Operating lease liabilities, long-term

 

3,507.3

 

 

3,438.7

 

 

3,061.9

 

Deferred income taxes, net

 

-

 

 

-

 

 

902.4

 

Income taxes payable, long-term

 

27.3

 

 

28.2

 

 

22.4

 

Other liabilities

 

186.2

 

 

182.6

 

 

141.1

 

Noncurrent liabilities of discontinued operations

 

-

 

 

-

 

 

2,486.2

 

Total liabilities

 

14,386.4

 

 

14,666.6

 

 

14,797.8

 

Shareholders' equity

 

3,904.8

 

 

3,977.4

 

 

7,312.4

 

Total liabilities and shareholders' equity

$

18,291.2

 

$

18,644.0

 

$

22,110.2

 

 
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)
 
13 Weeks Ended
May 3, 2025 May 4, 2024
Cash flows from operating activities:
Net income

$

343.4

 

$

300.1

 

Income from discontinued operations, net of tax

 

29.9

 

 

32.4

 

Income from continuing operations

$

313.5

 

$

267.7

 

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization

 

151.1

 

 

119.0

 

Provision for deferred income taxes

 

14.1

 

 

20.8

 

Stock-based compensation expense

 

17.2

 

 

24.0

 

Impairments

 

0.1

 

 

-

 

Gain on insurance proceeds related to fixed assets

 

(41.0

)

 

-

 

Other non-cash adjustments to income from continuing operations

 

3.1

 

 

0.5

 

Changes in operating assets and liabilities:
Merchandise inventories

 

(27.6

)

 

(32.5

)

Other current assets

 

(18.6

)

 

(7.0

)

Other assets

 

0.7

 

 

1.0

 

Accounts payable

 

(135.9

)

 

138.6

 

Income taxes payable

 

92.5

 

 

62.2

 

Other current liabilities

 

(13.0

)

 

(81.2

)

Other liabilities

 

2.6

 

 

(2.1

)

Operating lease right-of-use assets and liabilities, net

 

19.7

 

 

(5.8

)

Net cash provided by operating activities of continuing operations

 

378.5

 

 

505.2

 

Cash flows from investing activities:
Capital expenditures

 

(248.8

)

 

(316.5

)

Proceeds from insurance recoveries

 

50.0

 

 

-

 

Payments for fixed asset disposition

 

(0.1

)

 

(0.2

)

Net cash used in investing activities of continuing operations

 

(198.9

)

 

(316.7

)

Cash flows from financing activities:
Debt-issuance costs

 

(3.8

)

 

-

 

Proceeds from stock issued pursuant to stock-based compensation plans

 

2.8

 

 

3.9

 

Cash paid for taxes on exercises/vesting of stock-based compensation

 

(10.7

)

 

(19.5

)

Payments for repurchase of stock

 

(427.7

)

 

(272.2

)

Net cash used in financing activities

 

(439.4

)

 

(287.8

)

Cash flows from discontinued operations:
Net cash provided by operating activities of discontinued operations

 

104.5

 

 

190.5

 

Net cash used in investing activities of discontinued operations

 

(45.4

)

 

(156.3

)

Net cash provided by discontinued operations

 

59.1

 

 

34.2

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

0.7

 

 

(0.4

)

Net change in cash, cash equivalents and restricted cash

 

(200.0

)

 

(65.5

)

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

$

1,311.2

 

$

691.7

 

T-4
DOLLAR TREE, INC.
Segment Information
(In millions)
(Unaudited)
 
 

13 Weeks Ended

May 3, 2025 May 4, 2024
Net Sales:
Dollar Tree

$

4,636.5

 

$

4,165.6

 

Corporate, support and other

 

-

 

 

-

 

Total net sales

$

4,636.5

 

$

4,165.6

 

 
Other revenue:
Dollar Tree

$

-

 

$

-

 

Corporate, support and other

 

3.2

 

 

3.3

 

Total other revenue

$

3.2

 

$

3.3

 

 
Total Revenue:
Dollar Tree

$

4,636.5

 

$

4,165.6

 

Corporate, support and other

 

3.2

 

 

3.3

 

Total revenue

$

4,639.7

 

$

4,168.9

 

 
Cost of sales:
Dollar Tree

$

2,987.0

 

64.4

%

$

2,689.1

 

64.6

%

Corporate, support and other

 

-

 

-

 

 

-

 

-

 

Total cost of sales

$

2,987.0

 

64.4

%

$

2,689.1

 

64.6

%

 
Gross profit:
Dollar Tree

$

1,649.5

 

35.6

%

$

1,476.5

 

35.4

%

Corporate, support and other

 

-

 

-

 

 

-

 

-

 

Total gross profit

$

1,649.5

 

35.6

%

$

1,476.5

 

35.4

%

 
Selling, general and administrative expenses:
Dollar Tree

$

1,126.8

 

24.3

%

$

954.2

 

22.9

%

Corporate, support and other1

 

141.8

 

3.1

%

 

143.7

 

3.4

%

Total selling, general and administrative expenses

$

1,268.6

 

27.3

%

$

1,097.9

 

26.3

%

 
Operating income (loss):
Dollar Tree

$

522.7

 

11.3

%

$

522.3

 

12.5

%

Corporate, support and other1

 

(138.6

)

(3.0

%)

 

(140.4

)

(3.4

%)

Total operating income

$

384.1

 

8.3

%

$

381.9

 

9.2

%

 
1Corporate, 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-5
DOLLAR TREE, INC.
Dollar Tree Segment Information
(Unaudited)
13 Weeks Ended
May 3, 2025 May 4, 2024
Store Count:
Beginning

 

8,881

 

 

8,415

 

New stores

 

148

 

 

116

 

Stores converted from Family Dollar (a)

 

5

 

 

5

 

Closings

 

(18

)

 

(16

)

Ending

 

9,016

 

 

8,520

 

Selling Square Footage (in millions)

 

79.6

 

 

74.1

 

Growth Rate (Square Footage)

 

7.4

%

 

4.8

%

 
52 Weeks Ended
May 3, 2025 May 4, 2024
Sales per Square Foot (b)

$

235

 

$

235

 

 

(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.
T-6
DOLLAR TREE, INC.
Family Dollar
(reported as discontinued operations)
(Unaudited)
 
 
13 Weeks Ended
(In millions) May 3, 2025 May 4, 2024
Revenues:
Net sales

$

3,309.6

 

$

3,460.8

 

Other revenue

 

2.4

 

 

3.1

 

Total revenue

$

3,312.0

 

$

3,463.9

 

 
Cost of sales

$

2,321.4

 

$

2,589.6

 

Gross profit

$

988.2

 

$

871.2

 

Gross margin

 

29.9

%

 

25.2

%

 
Selling, general and administrative expenses

$

698.7

 

$

835.6

 

SG&A rate

 

21.1

%

 

24.1

%

Operating income

$

291.9

 

$

38.7

 

Operating margin

 

8.8

%

 

1.1

%

 
Store Count:
Beginning

 

7,622

 

 

8,359

 

New stores

 

3

 

 

41

 

Stores converted from Family Dollar (c)

 

(9

)

 

(10

)

Closings

 

(25

)

 

(513

)

Ending

 

7,591

 

 

7,877

 

Selling Square Footage (in millions)

 

58.1

 

 

60.1

 

Growth Rate (Square Footage)

 

(3.3

%)

 

(3.5

%)

 
52 Weeks Ended
May 3, 2025 May 4, 2024
Sales per Square Foot (d)

$

222

 

$

227

 

 

(c)

Stores converted from a Family Dollar store to a Dollar Tree store are reflected in the table above when the Family Dollar store closed.

(d)

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.
T-7
DOLLAR TREE, INC.
Reconciliation of Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)
 
From time-to-time, the Company discloses certain financial measures not derived in accordance with GAAP. These non-GAAP financial measures should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purposes of analyzing operating performance, financial position, liquidity, or cash flows. The non-GAAP financial measures we have disclosed include adjusted selling, general and administrative expenses; adjusted selling, general and administrative expense rate; adjusted operating income (loss); adjusted operating income (loss) margin; adjusted income from continuing operations; adjusted diluted earnings per share; and adjusted effective tax rate, in each case with respect to our continuing operations. The Company believes providing additional information in these non-GAAP measures that exclude the unusual expenses described below is beneficial to the users of its financial statements in evaluating the Company's current operating results in relation to past periods. In addition, the Company's debt covenants exclude the impact of certain unusual expenses. The Company has included a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures in the following tables.

 

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 $0.7 million of related consulting costs in the first quarter of fiscal 2024.
 

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. As a result of the strategic review and pending separation, we incurred consulting and other expenses totaling $3.7 million related to the continuing Dollar Tree business.
 

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 addition, the Company discloses free cash flow, a non-GAAP financial measure that we calculate as net cash provided by operating activities less capital expenditures. The Company believes free cash flow is an important indicator of our liquidity as it measures the amount of cash we generate from our business operations. Free cash flow may not represent the amount of cash flow available for general discretionary use, because it excludes non-discretionary expenditures, such as mandatory debt repayments and required settlements of recorded and/or contingent liabilities not reflected in cash flow from operations. The Company has included a reconciliation of free cash flow to the most comparable GAAP measures in the following tables.

 

A reconciliation of the projected adjusted diluted EPS, which is a forward-looking non-GAAP financial measure, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. GAAP measures may include the impact of such items as litigation reserves; restructuring charges; goodwill and intangible asset impairments; natural disasters; our store portfolio optimization review and strategic review and pending sale of Family Dollar, and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.

T-8

DOLLAR TREE, INC.
Reconciliation of Non-GAAP Financial Measures - Continuing Operations
(In millions, except per share data)
(Unaudited)
 
13 Weeks Ended
May 3, 2025 May 4, 2024
(Unaudited) (Unaudited)
Reconciliation of Adjusted Selling, General and Administrative Expenses - Dollar Tree Segment
Selling, general and administrative expenses - GAAP

$

1,126.8

 

$

954.2

 

Deduct: Strategic review costs

 

(3.6

)

 

-

 

Adjusted selling, general and administrative expenses (Non-GAAP)

$

1,123.2

 

$

954.2

 

Adjusted selling, general and administrative expense rate (Non-GAAP)

 

24.2

%

 

22.9

%

 
Reconciliation of Adjusted Operating Income - Dollar Tree Segment
Operating income (GAAP)

$

522.7

 

$

522.3

 

Add: Strategic review costs

 

3.6

 

 

-

 

Adjusted operating income (Non-GAAP)

$

526.3

 

$

522.3

 

Adjusted operating income margin (Non-GAAP)

 

11.4

%

 

12.5

%

 
Reconciliation of Adjusted Selling, General and Administrative Expenses -

Corporate, Support and Other
Selling, general and administrative expenses - GAAP

$

141.8

 

$

143.7

 

Deduct: Store closure costs

 

-

 

 

(0.7

)

Deduct: Strategic review costs

 

(0.1

)

 

-

 

Adjusted selling, general and administrative expenses

(Non-GAAP)

$

141.7

 

$

143.0

 

Adjusted selling, general and administrative expense rate2

 

3.1

%

 

3.4

%

 
Reconciliation of Adjusted Operating Loss - Corporate, Support and Other
Operating loss (GAAP)

$

(138.6

)

$

(140.4

)

Add: Store closure costs

 

-

 

 

0.7

 

Add: Strategic review costs

 

0.1

 

 

-

 

Adjusted operating loss (Non-GAAP)

$

(138.5

)

$

(139.7

)

Adjusted operating loss margin (Non-GAAP)2

 

(3.0

%)

 

(3.4

%)

 
Reconciliation of Adjusted Selling, General and Administrative Expenses - Continuing Operations
Selling, general and administrative expenses - GAAP

$

1,268.6

 

$

1,097.9

 

Deduct: Store closure costs

 

-

 

 

(0.7

)

Deduct: Strategic review costs

 

(3.7

)

 

-

 

Adjusted selling, general and administrative expenses (Non-GAAP)

$

1,264.9

 

$

1,097.2

 

Adjusted selling, general and administrative expense rate

 

27.3

%

 

26.3

%

 
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-8a
DOLLAR TREE, INC.
Reconciliation of Non-GAAP Financial Measures - Continuing Operations
(In millions, except per share data)
(Unaudited)
 

13 Weeks Ended

May 3, 2025

 

May 4, 2024

(Unaudited)

 

(Unaudited)

Reconciliation of Adjusted Operating Income - Continuing Operations
Operating income (GAAP)

$

384.1

 

$

381.9

 

Add: Store closure costs

 

-

 

 

0.7

 

Add: Strategic review costs

 

3.7

 

 

-

 

Adjusted operating income (Non-GAAP)

$

387.8

 

$

382.6

 

Adjusted operating income margin (Non-GAAP)

 

8.4

%

 

9.2

%

 
Reconciliation of Adjusted Income from Continuing Operations
Income from Continuing Operations (GAAP)

$

313.5

 

$

267.7

 

SG&A adjustments:
Add: Store closure costs

 

-

 

 

0.7

 

Add: Strategic review costs

 

3.7

 

 

-

 

Non-operating adjustment:
Deduct: Non-operating insurance gain

 

(61.8

)

 

-

 

Provision for income tax adjustments

 

14.3

 

 

-

 

Adjusted income from continuing operations (Non-GAAP)

$

269.7

 

$

268.4

 

Adjusted income from continuing operations as percentage of total revenue (Non-GAAP)

 

5.8

%

 

6.4

%

 
Reconciliation of Adjusted Diluted Earnings Per Share - Continuing Operations
Diluted earnings per share - continuing operations (GAAP)

$

1.47

 

$

1.23

 

SG&A adjustments:
Add: Store closure costs

 

-

 

 

-

 

Add: Strategic review costs

 

0.02

 

 

-

 

Non-operating adjustment:
Deduct: Non-operating insurance gain

 

(0.29

)

 

-

 

Provision for income tax adjustments

 

0.07

 

 

-

 

Adjusted diluted earnings per share - continuing operations (Non-GAAP)

$

1.26

 

$

1.23

 

 
Reconciliation of Adjusted Effective Tax Rate - Continuing Operations
Effective tax rate (GAAP)

 

25.9

%

 

24.6

%

Add/deduct: tax impact of non-GAAP adjustments3

 

0.2

%

 

-

%

Consolidated adjusted effective tax rate (non-GAAP)

 

26.1

%

 

24.6

%

 
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-9

DOLLAR TREE, INC.
Reconciliation of Non-GAAP Financial Measures
(In millions, except per share data)
(Unaudited)

 

Reconciliation of Net Cash Provided by Operating Activities of Continuing Operations to Free Cash Flow from Continuing Operations

13 Weeks Ended

May 3, 2025

May 4, 2024

Net cash provided by operating activities of continuing operations (GAAP)

$

378.5

 

$

505.2

 

Deduct:
Capital expenditures of continuing operations

 

(248.8

)

 

(316.5

)

Free cash flow from continuing operations (Non-GAAP)

$

129.7

 

$

188.7

 

 
Net cash used in investing activities of continuing operations (GAAP) (e)

$

(198.9

)

$

(316.7

)

Net cash used in financing activities (GAAP)

$

(439.4

)

$

(287.8

)

 

(e)

Net cash used in investing activities includes capital expenditures, which is included in our computation of free cash flow.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250604323197/en/

DOLLAR TREE INC

NASDAQ:DLTR (6/5/2025, 8:00:01 PM)

Premarket: 96.89 +0.22 (+0.23%)

96.67

+8.05 (+9.08%)



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