Dollar Tree reported Q2 fiscal 2024 results with net sales increasing 0.7% to $7.37 billion, driven by a 0.7% rise in enterprise-wide comparable store sales. Gross profit margin improved 80 basis points to 30.0%, primarily due to lower freight costs. However, net income declined 34% to $132.4 million, or $0.62 per diluted share, compared to $200.4 million, or $0.91 per share, in the prior year quarter.The company's selling, general and administrative expenses increased 200 basis points to 27.3% of total revenues, mainly due to unfavorable development of general liability claims and higher depreciation expenses from store investments. Operating income margin decreased 110 basis points to 2.8%. Dollar Tree segment saw a 1.3% increase in comparable store sales, while Family Dollar segment experienced a 0.1% decrease.Dollar Tree continues to execute strategic initiatives across both segments...Show More

Dollar Tree reported Q2 fiscal 2024 results with net sales increasing 0.7% to $7.37 billion, driven by a 0.7% rise in enterprise-wide comparable store sales. Gross profit margin improved 80 basis points to 30.0%, primarily due to lower freight costs. However, net income declined 34% to $132.4 million, or $0.62 per diluted share, compared to $200.4 million, or $0.91 per share, in the prior year quarter.The company's selling, general and administrative expenses increased 200 basis points to 27.3% of total revenues, mainly due to unfavorable development of general liability claims and higher depreciation expenses from store investments. Operating income margin decreased 110 basis points to 2.8%. Dollar Tree segment saw a 1.3% increase in comparable store sales, while Family Dollar segment experienced a 0.1% decrease.Dollar Tree continues to execute strategic initiatives across both segments, including expanding multi-price assortments, optimizing store formats, and investing in technology and workforce. The company has closed approximately 655 underperforming Family Dollar stores as part of its portfolio optimization review and is conducting a strategic alternatives review for the Family Dollar business segment. Management expects current sales trends and the resulting negative impact on operating income to continue into the second half of fiscal 2024.