Dollar Tree Reports 4.7% Sales Increase, Decline in Income for Fiscal Year Ending February 1, 2025

Dollar Tree, Inc. reported its financial results for the fiscal year ending February 1, 2025, revealing a net sales increase of 4.7% to $17.57 billion, compared to $16.77 billion in the previous fiscal year. The growth was driven by a 1.8% increase in comparable store net sales and an additional $1.1 billion from non-comparable stores. However, the company experienced a decline in income from continuing operations, which fell to $1.04 billion, or $4.83 per diluted share, down from $1.27 billion, or $5.76 per diluted share in the prior year. The gross profit margin remained stable at 35.8%, while selling, general, and administrative expenses increased as a percentage of total revenues, rising to 27.5% from 25.3%.

Significant operational changes included the decision to sell the Family Dollar business, which was classified as held for sale during the fiscal year. The company entered into a definitive agreement on March 25, 2025, to sell Family Dollar to Brigade Capital Management and Macellum Capital Management for $1.007 billion, with expected net proceeds of approximately $804 million. This strategic move follows a comprehensive review of the Family Dollar operations, which included identifying underperforming stores for closure. As of February 1, 2025, Dollar Tree operated 8,881 stores across the U.S. and Canada, an increase from 8,415 stores the previous year.

The company also reported a total employee headcount of 214,710, which includes 143,283 associates at Dollar Tree and 68,936 at Family Dollar. The workforce has been a focus area, with investments aimed at improving employee engagement and retention through competitive pay and benefits. Additionally, Dollar Tree has expanded its product offerings, including a multi-price assortment that now features items priced at $3 and $5, which has contributed to increased customer traffic and store productivity.

Looking ahead, Dollar Tree anticipates continued challenges from inflation and rising operational costs, which may impact profitability. The company plans to invest approximately $1.2 billion in capital expenditures for fiscal 2025, focusing on supply chain enhancements, new store openings, and technology improvements. The outlook remains cautious, with management emphasizing the need to adapt to changing market conditions and consumer preferences while executing on strategic initiatives to drive growth.