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Dollar Tree Q1 Earnings Reports & Insights

A tough Q1 for Dollar Tree. Headlining today’s earnings call: Profits fell short of expectations. Full-year outlook was lowered -- given increased shrink, plus a shift to lower-margin consumables as consumers scaled back on discretionary spending. For a quick summary and our takeaways, take a peek at the MPG Dollar Tree Q1 2023 Earnings Recap.


What’s next? How will these value channel shifts affect your strategy? Reach out to Courtney O’Grady for more insights that can help your business meet the challenges of today’s inflationary environment.



KEY TAKEAWAYS

  • Q1 earnings fell short of expectations, with quarterly profits coming in lower than expected

  • Essentials & consumables continue to be key categories for Dollar Tree Inc., as consumers scale back on discretionary spending

  • Full-year outlook has been reduced as a result of increased shrink, and a shift in the product mix to include more consumables, which carry a lower margin


+6.1% consolidated net sales, +3.4% Dollar Tree same store sales, +6.6% Family Dollar same store sales


Dollar tree shoppers and employees


COMPARABLE STORE SALES COMPOSITION

Traffic & Average Ticket Consumables & Discretionary

store sales data

CATEGORY MIX

Category% of Net Sales



OPERATING INCOME MARGIN

Basis Point Change Year-over-Year

operating income margin


Family Dollar logo

COMPARABLE STORE SALES COMPOSITION

Traffic & Average Ticket Consumables & Discretionary

comparable store sales composition


CATEGORY MIX

Category% of Net Sales




OPERATING INCOME MARGIN

Basis Point Change Year-over-Year


operating income margin


 

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