Strong Q3 Performance
Dollar Tree, Inc. delivered a high-quality quarter with mid-single-digit comps, above outlook earnings, and strong end-of-quarter momentum. Comparable sales increased by 4.2%, with discretionary mix improving by 40 basis points to 50.5%, and adjusted EPS at $1.21 was above the outlook.
Expansion of Multi-Price Strategy
Multi-price strategy, initiated in 2019, continues to drive momentum with Halloween sales reaching over $200 million, marking an all-time record. The strategy contributes to increased profitability by offering higher-value items and generating 3.5 times more profit per item than non-multi-price items.
Increased Customer Base
Dollar Tree, Inc. gained 3 million more households in Q3 compared to the previous year, with 60% of these shoppers coming from higher-income households. This reflects the brand's appeal across a broad spectrum of shoppers.
Gross Margin Improvement
Gross margin expanded by 40 basis points to 35.8%, driven by successful merchandise margin management, freight cost improvements, and discretionary sales mix.