Zach

Zach, on behalf of Simeon Gutman, asked for a comparison of traffic deceleration trends between Dollar Tree's frequent/loyal customers and more episodic customers, and if there was a noticeable gap in these trends.

Answer

CEO Mike Creedon focused on sales performance across income cohorts, noting that the core customer (earning around $60,000 annually) exhibited the highest comparable store sales. He emphasized that all customers, whether new or frequent, are finding value at Dollar Tree.

Zach, on behalf of Simeon Gutman, asked for a comparison of traffic deceleration trends between frequent/loyal customers and more episodic customers, seeking to understand if there's a significant gap in these trends.

Answer

CEO Mike Creedon focused on sales performance across income cohorts, emphasizing that the core customer (earning around $60,000 annually) showed the highest comps. He stated that both new and frequent Dollar Tree shoppers are finding their needs met, regardless of their shopping frequency.

Zach asked for a normalized EPS for the full year 2025, considering various one-time items, corporate and TSA noise, general liability, and tariff impacts.

Answer

CFO Stuart Glendinning explained the complexity, noting the unusual shape of tariffs during the year and pricing strategies designed to address them. He mentioned a ~$115 million cost for stickering/resignage, one-time inventory benefits, and the plan to maintain gross margin into next year.