Richard Dreiling, CEO: "The multi-price stores are out-comping the stores that have no multi-price in them, and they're outcomping the stores that have the valley of multi-price."
— Rick Dreiling
03Detailed Report
DLTR
Dollar Tree Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
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Executive Summary
Dollar Tree Inc reported Q1 2024 financial results demonstrating resilience in the face of market challenges. The company achieved a revenue increase of 4.2% year-over-year, totaling $7.63 billion, while adjusted diluted EPS rose to $1.43. Management highlighted growth in transaction metrics, despite facing a decrease in average ticket size influenced by softer discretionary spending, particularly around the Easter holiday. The company is undertaking a strategic review of its Family Dollar business to enhance performance and separate leadership tracks for its banners.
Key developments included a strong focus on expanding the multi-price strategy to increase value for consumers and drive sales. The CEO emphasized the importance of maintaining a competitive edge through operational flexibility and community-focused initiatives following a tornado disaster at a distribution center. With ongoing improvements in cash flow and operational efficiencies, Dollar Tree aims to capture additional market share in the discount retail space.
Key Performance Indicators
Revenue
Increasing
7.63B
QoQ: -11.66% | YoY: 4.20%
Gross Profit
Increasing
2.35B
30.80% margin
QoQ: -15.27% | YoY: 10.01%
Operating Income
Increasing
420.60M
QoQ: 151.17% | YoY: 46.14%
Net Income
Increasing
300.10M
QoQ: 117.55% | YoY: 49.75%
EPS
Increasing
1.38
QoQ: 117.58% | YoY: 51.65%
Revenue Trend
Margin Analysis
Financial Highlights
### Q1 2024 Key Financial Metrics
- Revenue: $7.63 billion, up 4.2% YoY
- Gross Profit: $2.35 billion (Gross Margin: 30.8%)
- Operating Income: $420.6 million (Operating Margin: 5.5%)
- Net Income: $300.1 million (Net Margin: 3.9%)
- Adjusted EPS: $1.43, reflecting management's cost control and improved freight dynamics.
- Cash Flow from Operations: $696 million, though down from $752 million YoY.
Management noted, "Easter was a 150 basis point drag on Dollar Tree's first quarter comp... this softness was Dollar Tree specific and concentrated in the 8 to 10 days prior to Easter."
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.63B
4.20%
-11.66%
Gross Profit
2.35B
10.01%
-15.27%
Operating Income
420.60M
46.14%
151.17%
Net Income
300.10M
49.75%
117.55%
EPS
1.38
51.65%
117.58%
Key Financial Ratios
Gross Profit Margin
Fair
30.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
5.51%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
3.93%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.36%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.10%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.28
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.42
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
21.91x
P/E ratio in line with market averages
Price to Book
Premium
3.60x
Trading at premium to book value, reflects strong intangibles or growth
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