Examples include: we are experiencing improved accessibility to a broader base of manufacturers and vendors by going to market as a 15,000-plus store chain. How are you thinking about those models next year? Together they are considered the nation’s largest small-box discount retailer, operating over 14,000 stores nationwide. Yeah. Dollar Tree, a Fortune 200 Company, operated 15,606 stores across 48 states and five Canadian provinces as of October 31, 2020. Well, I think, the first answer is that we're organizing around the strategy. And if I could ask a follow-up on the H2 stores, you talked about your plans for the multi-price expansion on the Dollar Tree side. Dollar Tree is a chain of discount stores that sell all items for $1.00 or less. Our merchants are going to continue to buy better, buy basics and buy great value and supply that to the customer from this point forward. I think it could be a benefit as we go forward into Q4, albeit not to the same rate on the Family Dollar side because we were cycling a fairly big increase in the accrual rates in Q3 a year ago, but I do believe there can be some improvement there. Good morning, guys. Our Canada President and Chief Operating Officer, Neil Curran, and his team are hitting on all cylinders. offering to nearly 500 stores, starting spring 2021. But there are probably six to seven states already on their path to that $15 an hour minimum wage that they've announced several years ago, and they're on their path to that. Those are the things that we can see. and we are pleased to announce we are expanding the program to a total of approximately 500 stores beginning in the spring. Our customers are buying these products and sales of our multi-price items continue to grow. How should we think about that? Yeah, that's a good question because we think about that a lot. Dollar Tree annual/quarterly revenue history and growth rate from 2006 to 2020. As I shared earlier, right now, when you look at relative performance to other stores or prior, the challenge we have is when we change to our 2.0 and brought in all our discretionary, it landed right in March. Gross profit margin for the Family Dollar segment improved 230 basis points to 26.8% in the third quarter. Offer is valid for UPS ground shipping only (approximately 4-5 days for delivery). You pushed out some omni-channel initiatives, it looks like you're looking at BOPIS for Family Dollar. Could you see any conditions under which you would roll back this test or this expansion of the test of 500 Dollar Tree Plus! Revenue through the first three quarters of 2020 is higher to the tune of 8.4%, resulting in double-digit profit growth. Our merchants have worked really hard at providing a much better value at sharper price points. And my follow-up question, Mike, is on framing the Family Dollar consumable business, which increased in the 4% range in the most recent quarter. Nearly every business, family and person has had to adapt and react to what is currently a new normal. Well, I think, the number one thing that we can see is the sales are up over the program when it was consumable. And operating margin increased 50 basis points to 12.7%, which represents a 300-basis-point improvement from Q2. So -- and again, I think we saw some leverage with the comp on occupancy, which, again, obviously, with a forward comp, we would expect leverage there. Our inventory levels improved in Q3 and we continue to be more productive with lower inventory, significantly increasing our inventory turns. In fact, we are seeing that when multi-price items are included in the basket, the average transaction value is approximately twice the size. It carries a Zacks Rank #2 (Buy) at present. Weighted average diluted share counts are assumed to be 236.3 million shares for Q4 and 237.5 million shares for the full year. Our merchants continue to look at merchandising methods through shelf-ready PQs and then distribution methods. Market data powered by FactSet and Web Financial Group. How much does Dollar Tree in the United States pay? You can quickly filter today's Dollar Tree promo codes in order to find exclusive or verified offers. And for fiscal 2020, we continue to expect consolidated capital expenditures to be approximately $1 billion. The report is only available for a limited time. Consolidated selling, general and administrative expenses, increased 20 basis points to 23.7% of net sales compared to 23.5% in Q3 a year ago. So the first one, the reason we're rolling it out, no, we're not limited by proximity to the DCs at all. Inventory for Dollar Tree at quarter end declined 1.8% from the same time last year, while selling square footage increased 4.2%. Okay. We did see sequential improvement in consumables throughout the quarter as inventory flow of high demand products improved. While we are not providing sales and EPS guidance, I do want to provide a few data points for your modeling. And at the minimum, as you can imagine, the state minimum wages are all over the Board. So the flow-through probably won't be quite the same on total gross profit. Two really good questions. Overall, gross profit for the enterprise increased 12.9% to $1.92 billion. Also, if you're happy with the test, are there any limits to how many stores could get this assortment, either because of store size, or proximity to DC? The year-over-year improvement was due to the following. Why is 500 stores the right number? And it's in the paper, the hand sanitizers, the wipes and some consumable related products. for a second. So it's going to be a continued focus, just like we talked about early this year. You're right. It's not quite at the level as it was back in March and April. It just won't be the same probably much as what we saw in Q3. Thank you. Have you gotten to a point like this where you've taken a test to the next level and then subsequently have had to roll it back? And like we have organized around our Dollar Tree Plus!, we are organizing around our omni-channel business as well. Yeah. The team has undergone a significant amount of work to get us to this stage with one consolidated store support center, a strong balance sheet and an aligned, energized and focused leadership team and a full staff of talented retailers. If you choose to have your order shipped via UPS Ground, the $4.95 flat rate will be applied automatically to your order, however certain restrictions apply. We ended the year expecting to about 1,250, but obviously COVID kind of gotten a way of that. How do you think about if that headwind were to come about? Well, we can -- Randy can get that for you. We are chasing the product and the national brand and it's the products that are COVID-related and manufacturers are still trying to build up capacity. So, people -- as we've talked about, seasonal, in particular, has been good as people try to stay somewhat normal of what's been an unusual period of time, decorate their homes or supplement their soft home and our Family Dollar stores has done well. This looks like the first time in a while where shrink is now a tailwind. Hi. In an environment where individuals are concerned about their health and exposure, about their income and jobs and about not knowing what is next, I firmly believe that Dollar Tree and Family Dollar are part of the solution. Gross profit margin improved 70 basis points to 34.9% versus Q3 a year ago. ET. We believe we have the ability to better serve customers across North America. And I think it's going to be slow to change. I'll ask one and a follow-up as one full question. Regarding the cadence of comps, each month's increase was greater than 5.5%, with September being the strongest month and October slightly better than August. Selling, general and administrative (SG&A) expenses, as a percentage of sales, increased 20 bps to 23.7% due to incremental pandemic-related costs of $35.3 million, which primarily related to the payment of premium wages to frontline workers, field management bonuses, and store cleaning and PPE supplies. Outstanding debt as of October 31st, 2020 was $3.55 billion. At this time, I will turn the conference back over to Randy Guiler for closing remarks. Thank you very much and have a good holiday. In third-quarter fiscal 2020, Dollar Tree opened 143 stores, expanded or relocated 34 outlets, and shuttered 16 stores. Stock Advisor launched in February of 2002. Scott Ciccarelli. These improvements were partially offset by distribution costs that increased 50 basis points, primarily due to higher payroll costs and depreciation. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. These $3 and $5 items will also be leveraged through our Family Dollar stores when it makes sense. Target Corporation TGT currently has a long-term expected earnings growth rate of 7.2% and a Zacks Rank #2. And then, if I could, just around Dollar Tree Plus!, I want to see if there's any incremental color that you could share in terms of how the stores were performing relative to the overall chain from a comp perspective when you roll out Dollar Tree Plus!? Good morning, everyone. I think, we will keep going after driving that basket size and when they're in our stores drive it with intent. So, which again, mix moved about 300 basis points year-over-year toward discretionary. Have a good day. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity. We plan to add Crafter's Square to the remainder of the Dollar Tree stores in early 2021. Ticket was up 19% this quarter and 22.6% last quarter. We're all looking forward to 2021. And I think it gives us the opportunity to show folks what we have in that arena and hopefully convert them to continued shoppers with us as we go forward. Going forward, the company remains focused on opening new stores, improving store productivity, increasing operating efficiencies, generating free cash flow and repurchasing shares. We'll take our next question from Chandni Luthra with Goldman Sachs. The beautiful thing is, we've got -- we are 15,000-store chains and we're conveniently located in their neighborhoods and close to their stores. Other selling, general and administrative expenses decreased approximately 5 basis points, primarily from lower travel and legal costs. Operator, we are now ready to take questions. Hey, Scot. The sales strength was broad-based geographically with each zone delivering positive comps ranging 4.7% or better. Hi. And the store size was really more related to -- we do not want to impact our single price point assortment that the customers used to in our stores. Customers are continuing to shop early to celebrate events and holidays. I would say, we really like the basket size. Yeah. And it met the need the last several months, as Kevin just described. So, obviously as we went through the quarter, mix was an important component of driving the improved merchandise margin and freight. The SG& A rate for the Family Dollar segment improved approximately 20 basis points to 22.2% compared to 22.4% for the third quarter of 2019. And we're going to keep doing the same thing as we are on the discretionary side. We have a strong balance sheet and continue to grow the company by investing in both new and renovated stores, our supply chain and technology to improve the customer experience. But it's really early for us, but we do like the basket we're seeing and the mix of the product. But the two things we do see, we like the sales that these are the product that we're putting in there at the $3 and $5 price point are selling. An example is our apparel category, where we delivered a significant improvement in sales and margin with material less inventory. Shelby. I continue to be very pleased with the team's overall progress. Capital expenditures were $238.7 million in the third quarter versus $279.8 million in Q3 last year. And so, there's less exposure there and ability to get more product out on our sales floor. Comps growth was backed by a 6.4% improvement in Family Dollar stores and a 4% rise in Dollar Tree. We never went forward with, but no, not to this level. Dollar Tree, a Fortune 200 Company, operated 15,606 stores across 48 states and five Canadian provinces as of October 31, 2020. Just building up on that last question on omni-channel. That's great. Now, I will turn the call over to Mike Witynski, Dollar Tree's President and Chief Executive Officer. So I just wanted to see if there's any puts and takes that you would call out to think about at the enterprise level if that is sustainable? If you think about that as they kind of resupply their home and things like that and decor. The rise in distribution costs included $11.4 million of pandemic-related payroll costs. So, I think those are important things as we've seen that mix shift a little bit. Simeon Gutman -- Morgan Stanley -- Analyst. Good day and welcome to the Dollar Tree Inc.'s Third Quarter Earnings Conference Call. Hey, guys. How should we think about that impact in the fourth quarter? Enterprise same-store sales increased 5.1% on a segment basis, comps for Family Dollar increased 6.4% and for Dollar Tree increased 4%. The typical Dollar Tree Cashier salary is $9. Our discretionary grew 2 times faster than the total market in Q3. What percent of the fleet are large enough to handle that Dollar Tree Plus! Like us on Facebook to see similar stories, Wisconsin missing Moderna vaccine: Police arrest former pharmacist, Mike Pence asks judge to toss Gohmert's lawsuit that seeks to overturn election results. So a lot of things like that have done very well. I mean, that's what we're really looking for is that it's -- this program has to be accretive to sales margin and operating income. Our customers really like the layout and the offering and the assortment. Currently, it has nearly $600 million remaining under its share-buyback plan. See all … The key elements of our improvement plan include: improved merchandising and marketing, raising stock -- raising store in stocks, upgrading brand standards, creating a selling culture and refining our format strategy. Inventory for Family Dollar at quarter end decreased 2.9% from the same period last year, while selling square footage increased 1.1%. And for fiscal 2020, we now expect consolidated depreciation and amortization to be approximately $680 million. Third quarter was quite healthy in the mid-20% range. Actions taken in 2019, including the consolidation of store support centers and the alignment of organizational leadership under one team are paying off. We have no obligation to update our forward-looking statements and you should not expect us to do so. We like the product that they are buying inside the basket. Prior year rate reflected a larger benefit from the reconciliation of the tax provision to the tax returns. You mentioned something about doing it in stores that are close to the DCs, I think. Thank you. We continue to like the results we are seeing with the Dollar Tree Plus! It's also selling at a much higher margin because it's discretionary product and we're able to manufacture these products and bring value to the customer. And you mentioned maybe some -- like shopping earlier, is there any signs of pull forward of holiday spending? I think -- way to think of it. And now we're rolling out to the chain and that took probably 18 months to two years. [Operator Instructions] We'll take our next question from Michael Montani with Evercore. I'll answer the first, the consumable. This is a combination of improved sales, gross margin and inventory returns. But it's really the categories that they're buying itself, right? Got it. And that's really helping us a lot in our sell through. And it gives us the ability to also leverage that across both banners where it makes sense. 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