DOLLAR TREE, INC. SEC 10-Q Report

Dollar Tree, Inc., a leading operator of discount variety stores, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant growth in both financial and operational metrics, reflecting the company's strategic initiatives and market performance.

Financial Highlights

Total Revenue: $4,570.4 million, increased 12.3% from the prior year due to a 6.5% comparable store net sales increase and net sales of $318.7 million at non-comparable stores.

Gross Profit: $1,570.1 million, increased 12.9% primarily due to improved mark-on from pricing initiatives and lower domestic freight costs.

Operating Income: $231.0 million, increased 7.0% with an operating income margin of 5.1%, slightly down from 5.3% in the prior year due to higher selling, general and administrative expenses.

Net Income: $188.4 million, compared to $132.4 million in the prior year, reflecting a strong performance in continuing operations.

Diluted EPS: $0.91, compared to $0.62 in the prior year, driven by increased income from continuing operations.

Business Highlights

Revenue Segments: The Dollar Tree segment reported net sales of $4,566.8 million for the 13 weeks ended August 2, 2025, with a breakdown of 50.6% from consumables, 49.0% from variety items, and 0.4% from seasonal products. For the 26 weeks ended August 2, 2025, net sales were $9,203.3 million, with consumables contributing 50.5%, variety items 47.3%, and seasonal products 2.2%.

Sales Units: The company operated 9,148 stores as of August 2, 2025, an increase from 8,881 at the beginning of the period. This includes 254 new stores and 41 stores converted from Family Dollar. The total selling square footage increased to 81.2 million from 78.4 million.

New Product Launches: Dollar Tree expanded its multi-price product assortment, which now includes a wide range of consumable and discretionary products at varying price points. As of August 2, 2025, more than 4,240 stores feature this multi-price format.

New Production Launches: The company announced plans to build a new distribution center in Marietta, Oklahoma, expected to be fully operational by spring 2027. This facility will have the capacity to serve 700 stores across the West and Southwest regions.

Future Outlook: The company is focused on strategic initiatives such as expanding its multi-price product assortment, optimizing its supply chain, and investing in technology to drive sales growth and improve operational efficiency. The sale of the Family Dollar business is expected to provide cash tax benefits and allow the company to focus on its core Dollar Tree operations.

SEC Filing: DOLLAR TREE, INC. [ DLTR ] - 10-Q - Sep. 03, 2025