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CHESAPEAKE, Va. – Dollar Tree Inc. today announced it will accelerate its capital-spending plans following a strong financial performance in the second half of the fiscal year ended January 28.
“We are committed to driving further store productivity as we focus on developing our people, tools and technology to fuel our accelerated growth, while simplifying our operations, improving our supply chain and innovating our merchandising strategy to better support our associates and to better serve our shoppers,” Rick Dreiling, chairman and chief executive officer, said in announcing the retailer’s fourth-quarter and fiscal 2022 earnings.
“Our sales performance shows that our third-quarter sales momentum continued into the fourth quarter. The same-store sales growth of 8.7% at Dollar Tree and 5.8% at Family Dollar represented comp sales accelerations on a one-, two- and three-year stacked basis, and are evidence that the early transformation actions taken since last summer are already beginning to have a positive impact,” Dreiling said.
Dollar Tree had 16,340 stores across 48 states and five Canadian provinces at the end of fiscal 2022. Stores operate under the brands of Dollar Tree, Family Dollar, and Dollar Tree Canada.
The company posted diluted earnings per share of $2.04 in the fourth quarter and expects per-share earnings of between $6.30 and $6.80 in fiscal 2023.
Executives are also projecting same-store sales at its Dollar Tree banner to increase in the low single digits this year; comps at its Family Dollar banner are projected to increase in the mid-single digits.
Retail square footage increased 2.5% in fiscal 2022. The company opened 464 new stores and closed 205 stores. Another 120 stores were relocated. Nearly 800 Family Dollar stores were renovated last year.
“We are on an accelerating journey of change,” Dreiling said. “We have undergone a significant amount of change in less than one year, and believe we have the team in place to capture the opportunity ahead of us. We are confident that the accelerated investments outlined will transform our company, will enable and propel us through years of accelerated growth and margin improvement, and will enhance the company’s ability to achieve substantially higher long-term earnings power.”
Dreiling said more details about the company’s vision will be revealed in coming months. “Dollar Tree has a bright future and I am energized to be a part of this transformational journey.”
