Supplemental Financial Presentation 4th Quarter 2023

Forward-looking Statements

This Supplemental Financial Presentation contains "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995, concerning our business and outlook, including our expected sales, comparable store sales, selling square footage growth, depreciation, net interest expense, effective tax rate, diluted earnings per share, capital expenditures, and new store growth for the first quarter and fiscal year 2024; our expected gross margin for fiscal year 2024; various underlying factors that impact our outlook for the first quarter and fiscal year 2024, fiscal year 2025, and thereafter; expectations regarding 2024 import routing scenarios and volume; and our plans and expectations regarding various initiatives and investments.

These forward-looking statements are subject to risks and uncertainties, and our actual results may differ materially from those indicated in these statements.

For information on the risks and uncertainties that could affect our actual results, please see the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in our Annual Report on Form 10-K filed on March 10, 2023, our Quarterly Report on Form 10-Q for the most recently ended fiscal quarter, and other filings we make from time to time with the Securities and Exchange Commission.

The forward-looking statements in this presentation are based on the company's plans, estimates and expectations as of March 13, 2024, and you should not rely on these forward-looking statements as representing the company's views after such date. Except as required by law, the company specifically disclaims any obligation to update any forward-looking statements contained in this presentation as a result of developments occurring after March 13, 2024, and you should not expect us to do so.

2

Comparable Store Sales Composition

Traffic, Average Ticket, Consumables, and Discretionary1

FISCAL 2022

FISCAL 2023

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

TOTAL

11.2%

7.5%

8.5%

8.7%

9.0%

3.4%

7.8%

5.4%

6.3%

5.8%

Customer Traffic

(3.6%)

(5.8%)

(5.2%)

(1.1%)

(3.9%)

5.5%

9.6%

7.0%

7.1%

7.4%

Average Ticket

15.4%

14.2%

14.6%

10.0%

13.4%

(2.1%)

(1.6%)

(1.5%)

(0.7%)

(1.5%)

Consumables

8.0%

7.9%

9.3%

9.0%

8.8%

6.9%

13.2%

11.1%

10.8%

10.5%

Discretionary

14.1%

6.7%

8.1%

8.5%

9.1%

1.2%

3.9%

1.1%

3.1%

2.3%

FISCAL 2022

FISCAL 2023

Q1

Q2

Q3

Q4

FY

Q1

Q2

Q3

Q4

FY

TOTAL

(2.8%)

2.0%

4.1%

5.8%

2.4%

6.6%

5.8%

2.0%

(1.2%)

3.2%

Customer Traffic

(3.7%)

(1.2%)

0.1%

0.5%

(1.0%)

4.3%

3.4%

1.4%

0.7%

2.5%

Average Ticket

1.0%

3.3%

4.1%

5.3%

3.4%

2.2%

2.3%

0.7%

(2.0%)

0.7%

Consumables

1.2%

4.0%

4.7%

7.6%

4.4%

9.8%

9.5%

6.2%

2.2%

6.7%

Discretionary

(14.7%)

(4.1%)

1.5%

0.5%

(4.4%)

(4.4%)

(5.7%)

(12.5%)

(12.0%)

(8.8%)

1Compared to same period in prior fiscal year

3

Dollar Tree

Consumables vs. Discretionary Mix Shift Over Time

YOY Consumables Mix Shift

-90

-280

-20

+180

+170

+220

+210

+190

bps

bps

bps

bps

bps

bps

bps

bps

49.2%

48.3%

45.5%

46.2%

46.8%

46.2%

42.5%

45.3%

48.0%

48.5%

48.4%

44.6%

47.2%

50.8%

51.7%

54.5%

53.8%

53.2%

53.8%

57.5%

54.7%

52.0%

51.5%

51.6%

55.4%

52.8%

FY

FY

FY

1Q

2Q

3Q

4Q

FY

1Q

2Q

3Q

4Q

FY

2019

2020

2021

FY 2022

FY 2023

Discretionary

Consumables

Discretionary Categories = Seasonal & Variety

4

Family Dollar

Consumables vs. Discretionary Mix Shift Over Time

YOY Consumables Mix Shift

-100

-20

+140

+200

+230

+290

+290

+260

bps

bps

bps

bps

bps

bps

bps

bps

77.5%

76.5%

76.3%

78.1%

77.3%

79.1%

76.6%

77.7%

80.1%

79.6%

82.0%

79.5%

80.3%

22.5%

23.5%

23.7%

21.9%

22.7%

20.9%

23.4%

22.3%

19.9%

20.4%

18.0%

20.5%

19.7%

2019

2020

2021

1Q

2Q

3Q

4Q

FY

1Q

2Q

3Q

4Q

FY

FY

FY

FY

FY 2022

FY 2023

Discretionary

Consumables

Discretionary Categories = Home, Apparel, Accessories, Seasonal, Electronics

5

Family Dollar Taking Consumables Market Share

% Change vs. Last Year

$ Sales Volume

Unit Volume

Market FD

10.6%

11.1%

11.3%

10.7%

11.4%

8.8%

9.7%

8.9%

7.5%

6.3%

6.9%

4.8%

3.5%

3.9%

2.5%

1.2%

2.7%

1.5%

1.2%

0.8%

-1.2%

-1.7%

-2.2%

-1.9%

-2.1%

-2.6%

-1.8%

-0.8%

-5.8%

-4.3%

-6.3%

-8.1%

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

FY 2022

FY 2023

Source: Nielsen Market Data in competing markets that include participating retailers across food, drug, mass, club, and dollar channels

6

Dollar Tree Taking Consumables Market Share

% Change vs. Last Year

$ Sales Volume

11.8%

10.7%

11.3%

10.5%10.2%

12.1%

Market

DT

9.7%

9.6%

8.7%

9.2%

9.4%

8.2%

7.2%

4.8%

2.2%

1.1%

8.4%

6.4%

8.0%

3.6%

Unit Volume

-2.1%

-2.6%

-3.3%

-2.6%

-9.5%

-7.2%

-11.3%

-11.2%

Q1

Q4

Q2

Q3

FY 2022

-2.8%

-3.0%

-2.5%

-1.5%

Q1

Q2

Q3

Q4

FY 2023

Source: Nielsen Market Data in competing markets that include participating retailers across food, drug, mass, club, and dollar channels

7

Sales per Square Foot

by Segment

$234

$220

$234

$200

$201

$203

$225

$227

$220

$221

FY 19

FY 20

FY 21

FY 22

FY 23

Dollar Tree

$216

$220

$212

$218

$218

$210

$214

$216

$214

$212

$214

$220

$211

$210

$191

$209

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q23

FY 19

FY 20

FY 21

FY 22

FY 23

Dollar Tree

Family Dollar

Family Dollar

8

Operating Margin (GAAP)

Year-Over-Year Basis Point Change

FY 2023

Q4 Trend Drivers

Q1

Q2

Q3

Q4

FY

Prior Year - GAAP

20.2%

15.4%

13.3%

16.8%

16.5%

COGS

Merchandise Cost1

(420)

(275)

55

230

(85)

↑

Lower freight costs

↓

Product cost inflation, unfavorable product mix

COGS

Occupancy

5

35

15

60

30

↑

Sales leverage, 53rd week impact

COGS

Distribution

(80)

(75)

(70)

(30)

(65)

↓

Higher capitalized costs last year, higher DC and

merchandising costs

COGS

Shrink

(55)

(75)

(60)

(30)

(55)

↓

Unfavorable inventory results

COGS

Markdowns

20

(5)

0

0

5

↔

SG&A

Payroll

(75)

(60)

(60)

(70)

(65)

↑

Sales leverage

↓

Store payroll investments, incentive compensation

SG&A

Facilities

(50)

(40)

(5)

(5)

(25)

↑

Sales leverage

↓

Repair & maintenance investments

↑

Sales and 53rd week leverage

SG&A

Other2

(5)

(15)

5

(95)

(30)

↓

D&A from incremental capex, self-insurancetrue-up,

impairment

Current Year - GAAP

13.6%

10.3%

12.1%

17.4%

13.6%

Variance vs. Last Year

-660 bps

-510 bps

-120 bps

60 bps

-290 bps

Note: All figures rounded to nearest 5 bps | 1Includes Freight (Import, Inbound, and Outbound) | 2Includes other items not included in above line items

9

Operating Margin (GAAP)

Year-Over-Year Basis Point Change

FY 2023

Q4 Trend Drivers

Q1

Q2

Q3

Q4

FY

Prior Year - GAAP

2.9%

1.7%

(0.6%)

0.0%

1.0%

COGS

Merchandise Cost1

(85)

5

140

50

30

↑

Lower freight cost, higher allowances

↓

Product cost inflation, unfavorable product mix

COGS

Occupancy

40

15

0

45

25

↑

Lower rent expense from impaired stores, 53rd week

COGS

Distribution

(20)

(5)

(15)

10

(10)

↑

Higher capitalized costs last year

COGS

Shrink

(60)

(45)

(70)

(55)

(60)

↓

Unfavorable inventory results

COGS

Markdowns

30

0

(35)

(130)

(35)

↑

Increased allowances,

↓

Inventory markdown reserve for closing stores

SG&A

Payroll

(75)

(65)

(80)

(80)

(75)

↓

Store payroll investments

SG&A

Facilities

(10)

(40)

(40)

(30)

(30)

↓

Repair & maintenance investments

SG&A

Other2

(80)

(5)

(40)

(6,930)

(1,875)

↓

Impairments, litigation charges, self-insurance true-

ups, D&A from incremental capex

Current Year - GAAP

0.3%

0.3%

(2.0%)

(71.2%)

(19.3%)

Variance vs. Last Year

-260 bps

-140 bps

-140 bps

-7,120 bps

-2,030 bps

Note: All figures rounded to nearest 5 bps | 1Includes Freight (Import, Inbound, and Outbound) | 2Includes other items not included in above line items

10

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Disclaimer

Dollar Tree Inc. published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 March 2024 14:08:03 UTC.