Dollar Tree Q2 Revenue Up Slightly
First quarter net sales at Dollar Tree were up slightly as a slight increase in store traffic was offset by a decrease in average ticket.
Sales for the quarter ended August 3 were $7.37 billion, an increase of 0.7%. Net income in the quarter was $132.4 million, or $0.62 per diluted share, a decrease from net income of $200.4 million, or $0.91 per diluted share, in the comparable quarter the previous year.
“We are encouraged by the continuous progress we are making in the transformation underway at Dollar Tree and Family Dollar, despite immense pressures from a challenging macro environment,” said Rick Dreiling, chairman and chief executive officer. “Customers are responding favorably to initiatives like our expanded multi-price offering and we are already seeing a meaningful sales lift at the 1,600 Dollar Tree stores that have been converted to our newest in-line multi-price format. With thousands of stores left to convert, we believe we are still in the very early innings of this rollout, with many years of runway left ahead of us.”
By segment, Dollar Tree same-store sales increased 1.3%, driven by a 1.4% increase in traffic, offset by a 0.1% decrease in average ticket. Family Dollar’s same-store net sales decreased 0.1%, driven by a 0.7% increase in traffic, offset by a 0.8% decrease in average ticket. Same-store net sales results for the Family Dollar segment do not include any closed stores during the second quarter as part of our previously announced portfolio optimization.
Year-to-date, Consolidated net sales increased 2.5% to $15 billion. Enterprise same-store sales increased 0.8%. Dollar Tree same-store sales increased 1.5%, driven by a 2.1% increase in traffic, partially offset by a 0.6% decline in average ticket. Family Dollar’s same-store sales were flat and were comprised of a 0.8% increase in traffic along with a 0.8% decline in average ticket.
Additionally, the company is continuing with its portfolio optimization review. As of August 3, approximately 655 stores have been closed with an additional 45 closures expected for the remainder of the fiscal year.
