Page 1

DOLLAR TREE . Dollar Tree , Inc. Reports Results for the Third Quarter Fiscal 2021 November 23 , 2021 ~ Consolidated Net Sales Increased 3.9 % to $ 6.42 Billion ~ ~ Same - Store Sales : Enterprise + 1.6 % ; Family Dollar + 2.7 % ; Dollar Tree + 0.6 % ~ ~ Diluted Earnings per Share of $ 0.96 ~ Company Announces Addition of $ 1.25 Price Point for All Dollar Tree Stores Nationwide by End of Fiscal Q1 2022 ~ CHESAPEAKE , Va .-- ( BUSINESS WIRE ) -- Nov . 23 , 2021-- Dollar Tree , Inc. ( NASDAQ : DLTR ) , today reported financial results for its third quarter ended October 30 , 2021 . " We experienced a strong finish to the quarter , as shoppers are increasingly focused on value in this inflationary environment , " stated Michael Witynski , President and Chief Executive Officer . " Our Dollar Tree pricing tests have demonstrated broad consumer acceptance of the new price point and excitement about the additional offerings and extreme value we will be able to provide . Accordingly , we have begun rolling out the $ 1.25 price point at all Dollar Tree stores nationwide . The continuing expansion of our key strategic initiatives , including Dollar Tree Plus , Combo Stores and the H2 format , are all going well and on , or ahead of , plan . I am very proud of our team's efforts - especially those in our stores and distribution centers - to serve our customers by delivering incredible value on everyday products . " Third Quarter Results Consolidated net sales increased 3.9 % to $ 6.42 billion from $ 6.18 billion in the prior year's third quarter . Enterprise same - store sales increased 1.6 % , and increased 6.7 % on a two - year stacked basis . Dollar Tree same - store sales increased 0.6 % on a constant currency basis ( or 0.8 % when adjusted to include the impact of Canadian currency fluctuations ) . Same - store sales for Family Dollar increased 2.7 % , cycling the strong 6.4 % increase in the prior year's quarter . Gross profit was $ 1.76 billion for the quarter . Gross margin was 27.5 % of net sales , compared to 31.2 % in the prior year's quarter . The decrease in gross margin was driven primarily by higher freight costs , partially offset by improved shrink results . Selling , general and administrative expenses improved 100 basis points to 22.7 % of total revenue compared to 23.7 % in the prior year's third quarter . The Company was cycling COVID - 19 - related costs of $ 35.3 million , or 57 basis points , in the prior year's quarter . Operating income for the quarter was $ 310.5 million compared with $ 465.5 million in the same period last year and operating income margin was 4.8 % in the current quarter compared to 7.5 % in last year's quarter . Net income was $ 216.8 million in the third quarter and diluted earnings per share for the quarter was $ 0.96 , compared to $ 1.39 per share in the prior year's quarter . The Company opened 125 new stores , expanded or relocated 34 stores , and closed 23 stores . Additionally , the Company completed 450 renovations to the Family Dollar H2 or Combo Store formats . Retail selling square footage at quarter - end was approximately 127.9 million square feet . The Company did not repurchase shares during the quarter as it was preparing for the announcement and launch of its broader nationwide $ 1.25 price point initiative . First Nine Months Results Consolidated net sales increased 2.6 % to $ 19.23 billion from $ 18.74 billion in the same period last year . Enterprise same - store sales increased 0.4 % on a constant currency basis ( or 0.5 % when adjusted to include the impact of Canadian currency fluctuations ) . Dollar Tree same - store sales increased 1.7 % on a constant currency basis ( or 1.8 % when adjusted for Canadian currency fluctuations ) . Same - store sales for Family Dollar decreased 0.8 % , cycling a strong 11.2 % increase in the same period a year ago . Gross profit for the first nine months was $ 5.59 billion . Gross margin was 29.1 % of net sales , compared to 30.1 % in the prior year period . Selling , general and administrative expenses improved to 22.7 % of total revenue compared to 23.7 % in the first nine months of 2020 . Operating income for the period improved 2.2 % to $ 1.23 billion . Operating income margin was 6.4 % for both the current year period and the prior year period . Net income compared to the prior year period improved 4.1 % to $ 873.7 million and diluted earnings per share increased 7.6 % to $ 3.80 compared to $ 3.53 in the prior year period . The Company repurchased 9,156,898 shares in the first nine months of fiscal 2021 for $ 950 million . Update on $ 1.25 Price Point at Dollar Tree Stores For 35 years , Dollar Tree has managed through inflationary periods to maintain the everything - for - one - dollar philosophy that distinguished Dollar Tree and made it one of the most successful retail concepts for three decades . However , as detailed in its September announcement , the Company believes this is the appropriate time to shift away from the constraints of the $ 1.00 price point in order to continue offering extreme value to customers . This decision is permanent and is not a reaction to short - term or transitory market conditions .