Quarterly report pursuant to Section 13 or 15(d)

Segments and Disaggregated Revenue

v3.24.3
Segments and Disaggregated Revenue
 9 Months Ended
Nov. 02, 2024
Segment Reporting [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
We operate more than 16,500 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 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 opening price point of $1.25, with additional offerings at higher 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 (loss) includes advertising revenue, which is a component of “Other revenue” in the accompanying unaudited Condensed Consolidated Income Statements. On June 5, 2024, we announced that we had initiated a formal review of strategic alternatives for the Family Dollar business segment, which could include among others, a potential sale, spin-off or other disposition of the business. There is not a set deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome.
We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income (loss). The CODM reviews these metrics for each of our reporting segments. We may revise the measurement of each segment’s operating income (loss), 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 and the results of operations for our Summit Pointe property in Chesapeake, Virginia that are considered shared services and therefore, these selling, general and administrative costs are excluded from our two reporting business segments.
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 39 Weeks Ended
(in millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Condensed Consolidated Income Statement Data (Unaudited):
Net sales:
Dollar Tree $ 4,338.0  $ 4,003.8  $ 12,569.1  $ 11,808.9 
Family Dollar 3,223.7  3,305.3  9,991.7  10,139.8 
Consolidated net sales
 $ 7,561.7  $ 7,309.1  $ 22,560.8  $ 21,948.7 
Gross profit:
Dollar Tree $ 1,534.1  $ 1,393.8  $ 4,401.9  $ 4,075.7 
Family Dollar 803.3  779.2  2,497.7  2,462.4 
Consolidated gross profit
 $ 2,337.4  $ 2,173.0  $ 6,899.6  $ 6,538.1 
Operating income (loss):
Dollar Tree $ 465.2  $ 482.7  $ 1,329.5  $ 1,416.2 
Family Dollar 1.6  (66.3) 23.9  (45.7)
Corporate, support and other
 (133.4) (114.7) (396.3) (361.3)
Consolidated operating income
 333.4  301.7  957.1  1,009.2 
Interest expense, net 27.5  30.4  80.8  80.5 
Other expense, net 0.1  0.2  0.2  0.2 
Income before income taxes $ 305.8  $ 271.1  $ 876.1  $ 928.5 
  As of
(in millions) November 2, 2024 February 3, 2024 October 28, 2023
Condensed Consolidated Balance Sheet Data (Unaudited):
Goodwill:
Dollar Tree $ 422.3  $ 423.3  $ 422.4 
Family Dollar 490.5  490.5  1,559.5 
Consolidated goodwill
 $ 912.8  $ 913.8  $ 1,981.9 
Total assets:
Dollar Tree $ 11,695.2  $ 10,315.9  $ 10,095.0 
Family Dollar 10,816.1  11,037.0  13,303.7 
Corporate, support and other
 821.5  670.6  632.5 
Consolidated total assets
 $ 23,332.8  $ 22,023.5  $ 24,031.2 
Disaggregated Revenue
The following table summarizes net sales by merchandise category for our segments:
  13 Weeks Ended 39 Weeks Ended
(in millions) November 2, 2024 October 28, 2023 November 2, 2024 October 28, 2023
Dollar Tree segment net sales by
    merchandise category:
Consumable $ 2,164.0  49.9  % $ 1,939.3  48.4  % $ 6,314.4  50.2  % $ 5,707.4  48.3  %
Variety 1,846.6  42.6  % 1,745.5  43.6  % 5,746.7  45.7  % 5,590.9  47.4  %
Seasonal 327.4  7.5  % 319.0  8.0  % 508.0  4.1  % 510.6  4.3  %
Total Dollar Tree segment net sales $ 4,338.0  100.0  % $ 4,003.8  100.0  % $ 12,569.1  100.0  % $ 11,808.9  100.0  %
Family Dollar segment net sales by
    merchandise category:
Consumable $ 2,638.8  81.9  % $ 2,711.0  82.0  % $ 8,086.2  80.9  % $ 8,166.4  80.5  %
Home products 207.7  6.4  % 214.7  6.5  % 638.1  6.4  % 677.2  6.7  %
Apparel and accessories 154.8  4.8  % 156.5  4.7  % 486.9  4.9  % 494.1  4.9  %
Seasonal and electronics 222.4  6.9  % 223.1  6.8  % 780.5  7.8  % 802.1  7.9  %
Total Family Dollar segment net sales $ 3,223.7  100.0  % $ 3,305.3  100.0  % $ 9,991.7  100.0  % $ 10,139.8  100.0  %