"We believe we are and will continue to be one of those winning retailers." - Mike Creedon, COO
— Mike Creedon
03Detailed Report
DLTR
Dollar Tree Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
Swipe to view all report sections
Executive Summary
Dollar Tree Inc reported its Q2 2024 results on August 3, 2024, exhibiting a modest 0.7% increase in net sales to $7.4 billion, yet falling short of expectations due to adverse macroeconomic factors impacting customer spending behavior. The company faced particular headwinds with its higher-income shoppers, reflecting a shift in discretionary spending patterns, while the Family Dollar segment aligned closely with previous performance metrics. Despite a promising multi-price rollout with 1,600 converted stores achieving a 4.6% comp lift, the overall performance necessitated an adjustment of FY24 EPS guidance down to a range of $5.20 to $5.60, indicating management's cautious outlook amidst these pressures and a commitment to strategic transformation initiatives.
Key Performance Indicators
Revenue
Increasing
7.38B
QoQ: -3.33% | YoY: 0.87%
Gross Profit
Increasing
2.22B
30.10% margin
QoQ: -5.67% | YoY: 1.92%
Operating Income
Decreasing
203.10M
QoQ: -51.71% | YoY: -32.68%
Net Income
Decreasing
132.40M
QoQ: -55.88% | YoY: -37.55%
EPS
Decreasing
0.62
QoQ: -55.07% | YoY: -36.08%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance:
- Q2 Revenue: $7.38 billion (YoY increase of 0.87%)
- Q2 Gross Profit: $2.22 billion (Gross Profit Margin: 30.1%)
- Operating Income: $203 million (Operating Margin: 2.75%)
- Net Income: $132 million (EPS: $0.62, down 36.08% YoY)
Cash Flow Analysis:
- Operating Cash Flow: $307 million (compared to $172 million YoY)
- Free Cash Flow: $(195.9) million, impacted by high capital expenditures of $502 million for store renovations and openings.
Balance Sheet Health:
- Cash and Cash Equivalents: $570 million
- Total Debt: $10.80 billion (Debt to Equity Ratio: 1.46)
- Current Ratio: 1.01, indicating liquidity health, though close to 1.0.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.38B
0.87%
-3.33%
Gross Profit
2.22B
1.92%
-5.67%
Operating Income
203.10M
-32.68%
-51.71%
Net Income
132.40M
-37.55%
-55.88%
EPS
0.62
-36.08%
-55.07%
Key Financial Ratios
Gross Profit Margin
Fair
30.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
2.75%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
1.79%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.59%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.79%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.02
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
1.46
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
40.41x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Fair Value
2.90x
Price-to-book ratio reasonable for profitable companies
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.