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as you look at the Dollar Tree gross margin rate, I think Q3 will be a little lower than Q2, but then you’ll see it pop back a little bit in Q4, which is highly discretionary quarter for us.
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2022 Q2
26 Aug 22
We’re getting our seasonal on time.
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2022 Q2
26 Aug 22
now, all that is in our system.
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2022 Q2
26 Aug 22
so far this month trending better than Q2 at Dollar Tree and Family Dollar both
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2022 Q2
26 Aug 22
The other top 5 categories, again, were beverages, candy, snacks and cookies and food.
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2022 Q2
26 Aug 22
lawn and garden season was one of the top five categories.
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2022 Q2
26 Aug 22
Our outlook does not include any share repurchases.
As of July 30th, we had $2.25 billion remaining in our existing share repurchase authorization.
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2022 Q2
26 Aug 22
We expect to deliver a mid-single-digit comparable store sales increase for the year comprised of a high single-digit increase in the Dollar Tree segment and a positive increase in the Family Dollar segment.
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2022 Q2
26 Aug 22
we are expecting Family Dollar to be approximately breakeven from a segment operating margin perspective in the second half, down from its first half margin of approximately 2%
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2022 Q2
26 Aug 22
We are experiencing some degree of inflationary-related product cost increases, especially in lower-margin consumables, primarily at Dollar Tree, contributing to approximately 15% of the guide adjustment.
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2022 Q2
26 Aug 22
This represents a $0.75 per share adjustment to the prior outlook based on the midpoint and is comprised of the following components: roughly 60% of the change relates to the price investments of Family Dollar, an estimated 20% of the change relates to the margin impact of the mix shift towards needs-based consumables projected to be a 300 basis-point shift at Family Dollar and a 150 basis-point shift at Dollar Tree in the back half. Again, the majority of this impact is expected to be on the Family Dollar side of the business.
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2022 Q2
26 Aug 22
one of our largest high-margin discretionary categories.
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2022 Q2
26 Aug 22
Dollar Tree’s sales continue to be negatively affected by the global helium shortage. This directly affects balloon sales, but also has a halo effect on the entire party department.
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2022 Q2
26 Aug 22
We have seen consumer purchasing shift based on economic conditions to a more consumable-based basket at both banners which will negatively impact our expected mix and product margin.
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2022 Q2
26 Aug 22
Inventory levels at Family Dollar increased 35.7% compared to Q2 last year due to increased capitalized freight and distribution costs and an increase in the average unit cost.
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2022 Q2
26 Aug 22
inventory levels at Dollar Tree are up 59.7% in dollars due to increased capitalized freight and distribution costs
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2022 Q2
26 Aug 22
Family Dollar segment, the second quarter SG&A rate increased 200 basis points to 23% compared to 21% in the prior year’s quarter.
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2022 Q2
26 Aug 22
For the second quarter, the SG&A rate for the Dollar Tree segment improved 30 basis points to 22%
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2022 Q2
26 Aug 22
consolidated selling, general and administrative expenses as a percentage of total revenue increased 100 basis points. The SG&A rate for the quarter was 24% compared to 23% in Q2 last year
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2022 Q2
26 Aug 22
Gross profit margin for the Family Dollar segment decreased 140 basis points to 24.7% compared to 26.1% for the same period last year. The factors include markdown costs increased 80 basis points due to higher promotional and price action markdowns. Shrink increased 45 basis points primarily from more favorable results in relation to accruals in the prior year quarter. And merchandise costs, including freight, increased 15 basis points, primarily due to higher freight costs and higher sales of lower-margin consumable merchandise, partially offset by higher initial mark-on.
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2022 Q2
26 Aug 22