Dollar Tree Q3 Sales Grow
Third quarter sales at Dollar Tree increased as the discount retailer’s growth was driven by gains in store traffic and an increase in average ticket.
Consolidated sales were up 3.5% to $7.56 billion. At Dollar Tree stores, same-store net sales were up 1.8% driven by a 1.5% increase in traffic and a 0.3% increase in average ticket. Family Dollar’s same-store net sales increased 1.9%, driven by a 1.8% increase in traffic and a flat average ticket. Same-store sales results for Family Dollar do not include stores that were closed during the third quarter.
Net income was $233.3 million, up from net income of $212 million in the comparable quarter the previous year, with diluted earnings per share of $1.08, up from diluted earnings per share of $0.97 in the third quarter of the previous year.
“Our Dollar Tree and Family Dollar merchandising efforts produced tangible results, and our third quarter sales came in at the high end of our expected range,” said Mike Creedon, interim chief executive officer. “As an organization, our top priorities remain accelerating the growth of the Dollar Tree segment, completing the Family Dollar strategic review process, and unlocking value for Dollar Tree shareholders.”
During the quarter, Dollar Tree opened 249 new Dollar Tree stores and six new Family Dollar stores. Additionally, approximately 2,300 Dollar Tree stores have been converted to its in-line multi-price format.
Dollar Tree officials also said the company remains committed to completing its formal review of strategic alternatives for the Family Dollar business segment, which could include a potential sale, spin-off, or other disposition of the business. The process is moving forward and there is no set deadline or definitive timeline for the completion of the review process.
The company also continues to reduce Family Dollar’s store count. As of November 2, approximately 670 of the 970 underperforming Family Dollar locations have been closed with an additional 25 stores expected to be shuttered during the remainder of its fiscal year 2024.
Dollar Tree also announced the departure of Jeff Davis, who is stepping down from his role as chief financial officer. The retailer has launched an external search for a new CFO and Davis will remain with the company through the filing of its fiscal year 2024 Form 10-K.
“We thank Jeff for his service and appreciate the contributions he made to the business during his time with Dollar Tree and Family Dollar,” Creedon said. “We remain committed to our business strategy and are focused on driving lasting value for our customers and shareholders.”