Dollar Tree, Inc. (DLTR)

Sector: Consumer Staples|Industry: Discount Stores|Market Cap: $16.47B|Employees: 212K

Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine’s Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine’s Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.

  1. Filings
  2. Company Profile

Business Summary

Dollar Tree, Inc. is a leading operator of retail discount stores, operating under the brand names of Dollar Tree, Family Dollar, and Dollar Tree Canada. The company operates a dual-banner strategy, with Dollar Tree stores offering a wide variety of merchandise, predominantly at the $1.25 price point, and Family Dollar stores providing competitively-priced merchandise in convenient neighborhood locations. The company aims to serve a broad range of customers across various geographic markets.

Key Statistics

  • Employees: 211,826 (as of February 3, 2024)
  • Geographic Footprint: 48 states and five Canadian provinces
  • Headquarters: Chesapeake, Virginia
  • Founded: Not available
  • Number of locations/facilities: 16,774 retail discount stores, 25 distribution centers in the United States, and 2 distribution centers in Canada (as of February 3, 2024)
  • Revenue: $30.58 billion (FY2023)
  • Market Capitalization: $31.57 billion (as of July 28, 2023)
  • Key Subsidiaries/Brands: Dollar Tree, Family Dollar, Dollar Tree Canada

Leadership

  • CEO: Richard W. Dreiling
  • CFO: Jeffrey A. Davis
  • Board Chair: Richard W. Dreiling
  • Other Key Executives: Aditya Maheshwari (Senior Vice President - Chief Accounting Officer)

No information on tenure or professional background was available in the 10-K.

Key Financial Metrics

  • Annual Revenue: $30.58 billion (FY2023)
  • Net Income: -$998.4 million
  • Market Cap: $31.57 billion (as of July 28, 2023)
  • Total Assets: $22.02 billion
  • Number of Employees: 211,826 (as of February 3, 2024)
  • Key Financial Highlights: Net sales increased 8.0% to $30.58 billion, comparable store net sales increased 4.6%, gross profit decreased 110 basis points to 30.4%, operating income was -$881.8 million, and net income was -$998.4 million.

Products and Services

The company offers a wide range of products across two main segments:

  • Dollar Tree: Offers a variety of merchandise, predominantly at the $1.25 price point, including consumables, variety merchandise, and seasonal goods.
  • Family Dollar: Provides a selection of competitively-priced merchandise, including consumables, home products, apparel and accessories, and seasonal and electronics merchandise.

Key Business Segments

The company operates through two main business segments:

  • Dollar Tree: Includes stores operating under the Dollar Tree and Dollar Tree Canada brands. Revenue for this segment was $16.77 billion in FY2023.
  • Family Dollar: Includes stores operating under the Family Dollar brand. Revenue for this segment was $13.81 billion in FY2023.

Business Strategy

The company's strategic priorities include growing the business through new store openings, expanded geographies, and improved product offerings. Key initiatives include:

  • Expanding the Dollar Tree brand assortment at the $1.25 price point and multi-price product assortment.
  • Implementing tailored store formats and improved merchandise offerings at Family Dollar.
  • Conducting a comprehensive store portfolio optimization review to improve profitability.
  • Investing in workforce, supply chain, and technology to modernize operations.

Industry Context

The company operates in the highly competitive discount retail sector, facing competition from dollar stores, mass merchandisers, online retailers, drug stores, and grocery stores. Key market trends include shifts in consumer spending, increased competition, and the growing importance of e-commerce. The company differentiates itself through high-value, high-quality, low-cost merchandise in convenient locations.

Risk Factors

  • Profitability Risks: Vulnerability to increases in merchandise, shipping, freight, fuel, wage, and benefit costs, and other operating costs.
  • Distribution Risks: Higher costs and disruptions in the distribution network, including efficient operations, shipping costs, labor disagreements, and vulnerability to natural disasters.
  • Product Risks: Potential for product recalls, decline in consumer confidence due to quality and safety concerns, and supply chain disruptions.
  • Economic Risks: Impact of inflation, adverse economic conditions, and changes in consumer spending.
  • Operational Risks: Inability to manage organizational talent, failure to protect inventory, and security risks at facilities.

Last Updated

2024-03-20

(Generated from latest 10-K filing)