Summary of quarterly performance and strategic progress. In Q3 2024, Dollar Tree reported consolidated net sales of $7.57 billion, up 3.5% year over year, with non-comp stores contributing outsized growth and the Dollar Tree banner driving stabilization in traffic and ticket. The 3.0 multi-price rollout continued to accelerate, with approximately 2,300 stores converted by Q3 and contributing roughly 30% of total net sales, reinforcing a shift toward higher-frequency consumables and value-based discretionary purchases. Gross margin expanded meaningfully, supported by lower freight costs, while SG&A rose on depreciation and temporary labor tied to the 3.0 rollout. Family Dollar delivered its first positive discretionary comp since 2022, aided by merchandising optimization, store renovations, and format improvements (H2.5 and XSB), signaling higher long-run unit economics. Management reaffirmed a disciplined approach to the Family Dollar strategic review (sale/spinoff or other disposition) and highlighted ongoing capital investments to support the growth runway.
Looking forward, the company guides for a low-single-digit enterprise comp in Q4 2024 and full-year net sales of roughly $30.7–$30.9 billion with adjusted EPS of $5.31–$5.51. Management cites ongoing value-focused merchandising, an expanding multi-price platform, and a tilted consumer toward food-at-home as growth drivers, while acknowledging macro headwinds, tariff risk, and potential SNAP-related timing effects. The balance sheet remains solid with modest leverage, strong operating cash flow, and an active share repurchase program.
Overall, the QQ3 print validates Dollar Tree’s strategic framework: scale-driven procurement, selective store modernization, and a measured rollout cadence designed to improve per-store productivity while managing risk. The near-term trajectory hinges on execution of the 3.0 rollout, the durability of consumables-driven demand, and the successful navigation of macro and policy headwinds affecting Family Dollar and the broader discount retail segment.