Dollar Tree reported Q1 FY2024 net sales increased 4.2% to $7.63 billion, driven by a 1.0% enterprise-wide comparable store sales growth and $457.4 million in non-comparable store sales. The company's gross profit margin improved 30 basis points to 30.8%, benefiting from lower freight costs, partially offset by higher consumable merchandise costs and increased shrink.Operating income margin decreased 20 basis points to 5.5%, as selling, general and administrative expenses rose 50 basis points to 25.3%. This increase was primarily due to temporary labor costs supporting Dollar Tree's multi-price rollout, higher depreciation expense, and severance costs related to Family Dollar store closures. Net income remained relatively flat at $300.1 million, or $1.38 per diluted share.The company closed approximately 550 underperforming Family Dollar stores during Q1 as part of its portfolio optimization review, with plans to close an additional 150 stores during the remainder of fiscal 2024. Subsequently, Dollar Tree announced a strategic alternatives review for the Family Dollar business segment, including potential sale or spin-off options. The company's Dollar Tree segment saw comparable store sales increase 1.7%, while Family Dollar segment sales rose 0.1%.

Dollar Tree reported Q1 FY2024 net sales increased 4.2% to $7.63 billion, driven by a 1.0% enterprise-wide comparable store sales growth and $457.4 million in non-comparable store sales. The company's gross profit margin improved 30 basis points to 30.8%, benefiting from lower freight costs, partially offset by higher consumable merchandise costs and increased shrink.Operating income margin decreased 20 basis points to 5.5%, as selling, general and administrative expenses rose 50 basis points to 25.3%. This increase was primarily due to temporary labor costs supporting Dollar Tree's multi-price rollout, higher depreciation expense, and severance costs related to Family Dollar store closures. Net income remained relatively flat at $300.1 million, or $1.38 per diluted share.The company closed approximately 550 underperforming Family Dollar stores during Q1 as part of its portfolio optimization review, with plans to close an additional 150 stores during the remainder of fiscal 2024. Subsequently, Dollar Tree announced a strategic alternatives review for the Family Dollar business segment, including potential sale or spin-off options. The company's Dollar Tree segment saw comparable store sales increase 1.7%, while Family Dollar segment sales rose 0.1%.