Q2 2024 Dollar Tree Inc Earnings Call Transcript
Key Points
- Dollar Tree Inc (DLTR) reported a 0.7% increase in net sales to $7.4 billion.
- The company successfully reopened approximately 85 former 99 Cents Only locations as Dollar Trees, with positive initial performance.
- Dollar Tree's multi-price expansion continues to resonate with customers, with converted stores seeing a 4.6% comp increase.
- The company added 2.8 million net new shoppers over the past 12 months.
- Family Dollar's Private Brands program is gaining momentum, contributing 16% of consumable sales in the quarter.
- Second quarter results fell short of expectations, with adjusted EPS of $0.67, $0.38 below the midpoint of the June outlook.
- General liability claims resulted in an incremental $84 million charge, significantly impacting EPS.
- Sales came in towards the low end of the outlook range, with Dollar Tree's comp performance lower than expected.
- The challenging macro environment continues to pressure customers, leading to a revised full-year outlook.
- Higher-than-expected upfront costs related to the 99 Cents Only stores negatively impacted third and fourth quarter EPS.
Greetings. Welcome to the Dollar Tree second quarter 2024 earnings call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Robert LaFleur, Senior Vice President, Investor Relations. Thank you. You may begin.
Good morning and thank you for joining us today to discuss Dollar Tree's Second Quarter Fiscal 2024 Results. Before we begin, I'd like to let everyone know that our CEO and Executive Chairman, Rick, has been under the weather for the past few days and his voice has not yet fully recovered.
He's here listening to the call today and sends his regards, but has asked our Chief Operating Officer, Mike Creedon, to step in for him today. At the end of our prepared remarks, Mike will join our CFO, Jeff Davis, for the Q&A session. We wish Rick a speedy recovery and I know he looks forward to chatting with you all again next quarter.
So, with that, I would like to remind everyone that some of
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