Annual report [Section 13 and 15(d), not S-K Item 405]

Segments and Disaggregated Revenue

v3.25.1
Segments and Disaggregated Revenue
 12 Months Ended
Feb. 01, 2025
Segment Reporting [Abstract]  
Segments and Disaggregated Revenue Segments and Disaggregated Revenue
As described in Note 2 under the caption “Assets Held for Sale and Discontinued Operations,” as well as Note 15 below, effective as of the fourth quarter of fiscal 2024, the Company no longer reports the Family Dollar segment; it now reports its financial performance based on the Dollar Tree segment and corporate, support and other. The Dollar Tree segment is a leading operator of discount variety stores offering merchandise predominantly at the opening price point of $1.25, with additional offerings at higher price points. Dollar Tree stores serve customers with a broad range of income levels principally in suburban locations. 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. 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 results are excluded from the Dollar Tree segment.
Our CODM is our chief executive officer of the enterprise. The CODM evaluates the financial performance of the Dollar Tree segment using segment gross profit and operating income. The CODM reviews these metrics to allocate resources to the segment, primarily in the annual budget and quarterly forecasting process. The CODM considers variances between actual results and internal budgets/forecasts on a monthly basis for both profit measures when making decisions about allocating capital and resources to the segment. The CODM also uses segment gross profit to evaluate our ability to control product and supply chain costs relative to changes in sales between comparable periods. The CODM uses operating income to assess the overall performance for the segment. The CODM is provided asset information on a consolidated basis rather than by segment.
The accounting policies of the segments are the same as those described in Note 2. 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 includes costs that were previously incurred in support of the Family Dollar segment but are not directly attributable to it and thus were not recorded in discontinued operations. Information for our segments, as well as for corporate, support and other, including the reconciliation to income from continuing operations before income taxes, is as follows:
(in millions) Dollar Tree Segment Corporate, Support and Other Total
Year Ended February 1, 2025
Net sales $ 17,565.8  $ —  $ 17,565.8 
Cost of sales 11,284.1  —  11,284.1 
Gross Profit 6,281.7  —  6,281.7 
Other revenue 0.1  12.6  12.7 
Selling, general and administrative expenses 4,193.2  639.2  4,832.4 
Operating income (loss) 2,088.6  (626.6) 1,462.0 
Interest expense, net 107.5 
Other (income) expense, net (29.1)
Income from continuing operations before income taxes $ 1,383.6 
Depreciation and amortization expense $ 488.9  $ 38.0  $ 526.9 
Capital expenditures $ 1,262.2  $ 38.3  $ 1,300.5 
Year Ended February 3, 2024
Net sales $ 16,770.3  $ —  $ 16,770.3 
Cost of sales 10,761.4  —  10,761.4 
Gross Profit 6,008.9  —  6,008.9 
Other revenue —  10.8  10.8 
Selling, general and administrative expenses 3,730.3  514.9  4,245.2 
Operating income (loss) 2,278.6  (504.1) 1,774.5 
Interest expense, net 112.5 
Other expense, net 0.1 
Income from continuing operations before income taxes $ 1,661.9 
Depreciation and amortization expense $ 370.1  $ 30.4  $ 400.5 
Capital expenditures $ 1,081.2  $ 112.6  $ 1,193.8 
Year Ended January 28, 2023
Net sales $ 15,405.7  $ —  $ 15,405.7 
Cost of sales 9,630.2  —  9,630.2 
Gross Profit 5,775.5  —  5,775.5 
Other revenue —  5.8  5.8 
Selling, general and administrative expenses 3,239.8  442.2  3,682.0 
Operating income (loss) 2,535.7  (436.4) 2,099.3 
Interest expense, net 127.2 
Other expense, net 0.4 
Income from continuing operations before income taxes $ 1,971.7 
Depreciation and amortization expense $ 338.5  $ 26.8  $ 365.3 
Capital expenditures $ 544.4  $ 94.6  $ 639.0 
Disaggregated Revenue
The following table summarizes net sales by merchandise category for our Dollar Tree segment:
  Year Ended
(in millions) February 1, 2025 February 3, 2024 January 28, 2023
Consumable $ 8,575.3  48.8  % $ 7,915.6  47.2  % $ 6,978.8  45.3  %
Variety 7,944.0  45.2  % 7,781.4  46.4  % 7,456.3  48.4  %
Seasonal 1,046.5  6.0  % 1,073.3  6.4  % 970.6  6.3  %
Total Dollar Tree segment net sales $ 17,565.8  100.0  % $ 16,770.3  100.0  % $ 15,405.7  100.0  %