Quarterly report pursuant to Section 13 or 15(d)

Segments and Disaggregated Revenue

v3.23.2
Segments and Disaggregated Revenue
 6 Months Ended
Jul. 29, 2023
Segment Reporting [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
We operate more than 16,400 retail discount stores in 48 states and five Canadian provinces. Our operations are conducted in two reporting business segments: Dollar Tree and Family Dollar. We define our segments as those operations whose results our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources.
The Dollar Tree segment is the leading operator of discount variety stores offering merchandise predominantly at the fixed price point of $1.25, with additional offerings at $3, $4 and $5 price points. The Dollar Tree segment includes our operations under the “Dollar Tree” and “Dollar Tree Canada” brands, 15 distribution centers in the United States and two distribution centers in Canada.
The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of competitively-priced merchandise in convenient neighborhood stores. The Family Dollar segment consists of our operations under the “Family Dollar” brand and ten distribution centers. The Family Dollar segment Operating income includes advertising revenue, which is a component of Other revenue in the accompanying unaudited condensed consolidated income statements.
We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income. The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income, as determined by the information regularly reviewed by the CODM. If the measurement of a segment changes, prior period amounts and balances are reclassified to be comparable to the current period’s presentation. Corporate, support and Other consists primarily of store support center costs that are considered shared services and therefore these selling, general and administrative costs are excluded from our two reporting business segments. These costs include operating expenses for our store support center and the results of operations for our Summit Pointe property in Chesapeake, Virginia.
Information for our segments, as well as for Corporate, support and Other, including the reconciliation to Income before income taxes, is as follows:
  13 Weeks Ended 26 Weeks Ended
(in millions) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022
Condensed Consolidated Income Statement Data:
Net sales:
Dollar Tree $ 3,873.4  $ 3,571.1  $ 7,805.1  $ 7,352.9 
Family Dollar 3,446.7  3,194.2  6,834.5  6,312.5 
Consolidated Net sales $ 7,320.1  $ 6,765.3  $ 14,639.6  $ 13,665.4 
Gross profit:
Dollar Tree $ 1,293.3  $ 1,334.9  $ 2,681.9  $ 2,869.6 
Family Dollar 841.4  789.5  1,683.2  1,595.3 
Consolidated Gross profit $ 2,134.7  $ 2,124.4  $ 4,365.1  $ 4,464.9 
Operating income (loss):
Dollar Tree $ 397.8  $ 550.8  $ 933.5  $ 1,315.0 
Family Dollar 11.8  55.0  20.6  144.5 
Corporate, support and Other (121.8) (100.4) (246.6) (222.6)
Consolidated Operating income 287.8  505.4  707.5  1,236.9 
Interest expense, net 24.2  30.6  50.1  64.6 
Other expense, net (0.1) 0.1  —  0.1 
Income before income taxes $ 263.7  $ 474.7  $ 657.4  $ 1,172.2 
  As of
(in millions) July 29, 2023 January 28, 2023 July 30, 2022
Condensed Consolidated Balance Sheet Data:
Goodwill:
Dollar Tree $ 423.8  $ 423.6  $ 424.8 
Family Dollar 1,559.5  1,559.5  1,559.5 
Consolidated Goodwill $ 1,983.3  $ 1,983.1  $ 1,984.3 
Total assets:
Dollar Tree $ 9,742.9  $ 9,914.6  $ 9,783.8 
Family Dollar 13,065.0  12,562.2  12,359.1 
Corporate, support and Other 620.1  545.3  533.4 
Consolidated Total assets $ 23,428.0  $ 23,022.1  $ 22,676.3 
Disaggregated Revenue
The following table summarizes net sales by merchandise category for our segments:
  13 Weeks Ended 26 Weeks Ended
(in millions) July 29, 2023 July 30, 2022 July 29, 2023 July 30, 2022
Dollar Tree segment net sales by
    merchandise category:
Consumable $ 1,880.9  48.5  % $ 1,671.9  46.8  % $ 3,768.1  48.3  % $ 3,419.1  46.5  %
Variety 1,981.8  51.2  % 1,892.9  53.0  % 3,845.4  49.3  % 3,757.3  51.1  %
Seasonal 10.7  0.3  % 6.3  0.2  % 191.6  2.4  % 176.5  2.4  %
Total Dollar Tree segment net sales $ 3,873.4  100.0  % $ 3,571.1  100.0  % $ 7,805.1  100.0  % $ 7,352.9  100.0  %
Family Dollar segment net sales by
    merchandise category:
Consumable $ 2,741.9  79.6  % $ 2,467.0  77.3  % $ 5,455.4  79.8  % $ 4,902.1  77.7  %
Home products 223.0  6.5  % 234.1  7.3  % 462.5  6.8  % 482.2  7.6  %
Apparel and accessories 174.4  5.0  % 191.9  6.0  % 337.6  4.9  % 359.3  5.7  %
Seasonal and electronics 307.4  8.9  % 301.2  9.4  % 579.0  8.5  % 568.9  9.0  %
Total Family Dollar segment net sales $ 3,446.7  100.0  % $ 3,194.2  100.0  % $ 6,834.5  100.0  % $ 6,312.5  100.0  %