Revenue at Dollar Tree Grows in Q4

Sales at Dollar Tree in the fourth quarter grew driven by an increase in the average ticket, which helped offset a modest decline in traffic.

Sales for the 13 weeks ended Jan. 28 were $7.72 billion, an increase of 9% from the comparable quarter the previous year. Enterprise same-store sales increased 7.4% with Dollar Tree same-store sales up 8.7%.

Dollar Tree stores that fully lapped the rollout of Break-the-Dollar produced a 3.0% same-store sales increase in the quarter, and sequentially increased same-store sales in each month throughout the quarter. Stores which had not lapped the Break-the-Dollar produced an 11.6% same-store sales increase in the quarter, a significant sequential improvement for the second consecutive quarter. 

Family Dollar’s 5.8% same-store sales increase comprised a 5.3% increase in average ticket and a 0.5% increase in traffic as the company continues to drive strong trends in performance following its price investment and initial accelerated investments in labor and store conditions. The same-store sales improvement in the back half of fiscal 2022 was achieved while investing several percentage points in price relative to the market, which was more than recovered through volume, with the company taking market share.

Company-wide net income in the fourth quarter was $452.2 million, down slightly from net income of $454.2 million in the comparable quarter the previous year.

“Our sales performance shows that our third quarter sales momentum continued into the fourth quarter. The same-store sales growth at Dollar Tree and Family Dollar represented comp sales accelerations on a one-, two- and three-year stacked basis, and are evidence that the early transformation actions taken since last summer are already beginning to have a positive impact,” said Rick Dreiling, chairman and CEO of Dollar Tree. “We are committed to driving further store productivity as we focus on developing our people, tools and technology to fuel our accelerated growth, while simplifying our operations, improving our supply chain and innovating our merchandising strategy to better support our associates and to better serve our shoppers.”

For the retailer’s fiscal year, consolidated net sales increased 7.6% to $28.32 billion. Enterprise same-store sales increased 5.9%. Dollar Tree same-store sales increased 9.0%, driven by a double-digit increase in average ticket, partially offset by a decline in traffic. Family Dollar same-store sales increased 2.4%, driven by an increase in average ticket partially offset by a decline in traffic. Net income improved 21.7% to $1.62 billion.

Looking ahead to 2023, Dollar Tree is forecasting consolidated net sales in the range of $29.9 billion to $30.5 billion with comparable store sales in the low- to mid-single digits.