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Feb 01
Dollar Tree Q4 2024 Earnings Report
Dollar Tree reported its Q4 2024 results, showing modest sales growth but a decline in operating income and profitability metrics.
Key Takeaways
Dollar Tree's Q4 2024 results reflected a 0.7% increase in net sales to $4.9967 billion, with same-store net sales growth of 2.0%. Operating income fell by 26.5% to $533.6 million. GAAP EPS from continuing operations was $1.86, and adjusted consolidated EPS was $2.29. The company also reported a gross profit of $1.8798 billion, with a decline in gross margin to 37.6%.
Net sales increased slightly by 0.7% to $4.9967 billion.
Operating income decreased by 26.5% to $533.6 million.
GAAP diluted EPS from continuing operations was $1.86, with adjusted consolidated EPS at $2.29.
Gross profit decreased 2.8% to $1.8798 billion, with a gross margin of 37.6%.
Dollar Tree
Dollar Tree
Dollar Tree Revenue by Segment
Revenue by Segment
Dollar Tree Revenue
CapyFin.com Forward Guidance
For full-year fiscal 2025, Dollar Tree expects net sales between $18.5 billion and $19.1 billion and adjusted EPS from continuing operations between $5.00 and $5.50. The company also anticipates a negative impact of $0.30 to $0.35 on earnings due to only half-year reimbursement from Family Dollar transition services.
Positive Outlook
- Expected net sales growth of 3% to 5%.
- Planned cost optimizations post Family Dollar divestiture.
- Continued focus on Dollar Tree’s multi-price format expansion.
- Strong customer acceptance of expanded assortment.
- Enhanced capital allocation and share repurchase potential.
Challenges Ahead
- Negative EPS impact from half-year TSA reimbursement shortfall.
- Higher shared service expense burden during the first half of fiscal 2025.
- Uncertainty from pending antitrust approval for Family Dollar sale.
- Potential macroeconomic headwinds affecting consumer spending.
- Continued cost pressures from freight, shrink, and store-related expenses.