On this page of StockholderLetter.com we present the latest annual shareholder letter from DOLLAR TREE, INC. — ticker symbol DLTR. Reading current and past DLTR letters to shareholders can bring important insights into the investment thesis.

 •  5/7/2024 Letter Continued (Full PDF)
 •  5/2/2023 DLTR Stockholder Letter
 •  More "Department Stores" Category Stockholder Letters
 •  DLTR Benford's Law Stock Score = 84

DLTR Shareholder/Stockholder Letter Transcript:

A N N UA L
RE P O RT
2 0 23

EVOLVING THROUGH
POSITIVE, DYNAMIC CHANGE
Dollar Tree, Inc. is a leading operator of discount variety stores that has served North America for nearly
forty years. The Company operates more than 16,700 stores across the 48 contiguous states and five
Canadian provinces, supported by a coast-to-coast logistics network and more than 211,000 associates.
With two iconic brands, Dollar Tree and Family Dollar, a world-renowned merchandising team, the
Company has transformed its store formats in order to serve customers in all types of geographic
markets. Dollar Tree is known for its    thrill-of-the-hunt    shopping experience where customers discover
new treasures every week, all at a tremendous value. Family Dollar, known as    the neighborhood
discount store,    provides customers with a quality, high-value assortment of basic necessities and
seasonal merchandise.
In 2023, the Company achieved a number of important milestones to better position our business for
growth across both our Dollar Tree and Family Dollar segments. We continue to focus on expanding our
multi-price product assortment at Dollar Tree, improving the operating performance at Family Dollar, and
modernizing our supply chain/technology infrastructure. The actions we   re currently taking to optimize
our store portfolio are intended to improve our profitability and to better serve the needs of all our key
constituents. Our organization has the leadership team in place to drive transformational change and
deliver meaningful, long-term improvements in our store operations and across the entire enterprise.
STORE COUNT
STORE COUNT
(at year end)
NET SALES
(at year end)
(in billions)
16,774
16,077
16,340
$30.6
248
DOLLAR TREE
15,685
15,288
8,167
DOLLAR TREE
$28.3
$26.3
8,359
FAMILY DOLLAR
'19
'20
'21
'22
'23
2023 ANNUAL REPORT
$25.5
$23.6
'19
'20
'21
'22
'23

Richard Dreiling
Chairman and Chief Executive Officer
To Our Shareholders, Customers
and Associates,
2023 was a transformative year for Dollar Tree, Inc.     it was my first year as both Chairman and
CEO and we achieved a number of pivotal milestones that fortified our core business operations
and laid a foundation for long-term business growth. In 2023, we gained market share across
both segments of the business and delivered on key growth objectives. Moving
forward, our business strategy centers on accelerating the multi-price journey
at Dollar Tree, improving sales productivity and profitability at Family Dollar,
investing in new technology to improve our supply chain capabilities, and
Together, we
promoting the long-term career development of our associates. We are also
taking the necessary and appropriate steps to optimize our store portfolio to
are focused on
better align with our operational and financial objectives and with the needs of
making lasting
our shareholders, associates, and customers.
Leadership Team Aligned with Transformation
Since 2022 we have made substantive changes in the composition of our
Board, including the addition of eight new directors with the unique skills and
experience needed to oversee the transformation of our business. One of the
Board   s first directives was to identify and hire a new executive management
team with the necessary capabilities to drive transformational change. We
successfully completed the executive transition in 2023 and our leadership
team is now fully aligned with the Board   s objectives. Together, we are focused
on making lasting improvements to our operations, stores, and the products
available to our customers.
improvements to our
operations, stores,
and the products
available to our
customers.
20 23 A N N U A L R E P O R T

Key Accomplishments in 2023
Throughout 2023 we executed on multiple growth initiatives designed to improve store conditions,
modernize our supply chain operations, and update our information technology systems.
Highlights from 2023 include:
    Net sales growth of 8.0% to a record $30.6 billion;
    Same-store sales growth of 5.8% in the Dollar Tree segment, which
came on top of a 9.0% increase in 2022;
    Same-store sales growth of 3.2% in the Family Dollar segment,
reflecting positive momentum in both customer traffic and average
ticket;
Well-run stores
are rewarded
with repeat
customer visits,
    Opened a record 641 new stores.
bigger baskets,
    In the Family Dollar segment, we launched 250 new private brands,
and positive
converted 300 control brands to private brands, added a net 900 new
SKUs, completed planogram resets, and raised the merchandise height
profile to 78 inches across the portfolio;
feedback.
    In the Dollar Tree segment, we expanded our $3, $4, and $5 frozen
and refrigerated items to more than 6,500 stores and our $3 and $5
center-store merchandise to approximately 5,000 stores. In the current year, we are rolling
out our    More Choices    program and fully integrating multi-price items into approximately
3,000 stores and expanding our assortment by over 300 items.
    In Supply Chain, our distribution center in Matthews, North Carolina is the first to be fully
operational with state-of-the-art Rotacart technology. We are also making significant
progress in adding temperature control to facilities across our distribution network.
Importantly, we are on track to return to West Memphis, Arkansas, later in 2024 with a
newly transformed distribution center.
    As part of our Information Technology modernization, we began rolling out our new
Warehouse Management system. This investment, along with other new enterprisewide solutions like our Transportation Management and Labor Management systems is
designed to deliver additional operating efficiencies across the company.
2023 A N N U A L R E P O R T

Portfolio Optimization
Well-run stores are rewarded with repeat customer visits, bigger baskets, and positive feedback.
Our team is focused on improving our operations, product selection, and customer experience.
To better align our retailing operations with these objectives, in 2023 we announced a
comprehensive store optimization review which would result in the closing of underperforming
stores while continuing our growth plan by opening new stores in opportunistic locations across
the country. As part of that review, our leadership team and Board identified approximately 970
underperforming Family Dollar stores and a much smaller number of underperforming Dollar Tree
stores (30), which we will close to free up resources for profitable growth and investment across
the portfolio.
Our Associates and Values Drive Our Business
In 2023 we refreshed our organizational values with a focus on five pillars: Serve
with Accountability, Inspire Belonging, Champion Empowerment, Operate with
Excellence, and Act With Integrity. I would like to express my deep gratitude to
each of the more than 211,000 associates at Dollar Tree and Family Dollar for
their hard work and dedication     and for living these values every day. I am
proud of the meaningful progress we have made in our efforts to improve our
operations, our responsiveness, and our associate engagement. We set out to
improve our associates    experience by simplifying the way we work, and we
have made significant advancements towards that objective in 2023.
Finally, I want to thank all of Dollar Tree   s shareholders directly for your continued
support and confidence in our Board as we continue to work to transform our
business, improve operations, and deliver value to both our customers and
shareholders.
I am proud of
the meaningful
progress we have
made in our efforts
to improve our
operations, our
responsiveness,
and our associate
engagement.
Sincerely yours,
Richard Dreiling
Chairman and Chief Executive Officer
20 23 A N N U A L R E P O R T



 5/7/2024 Letter Continued (Full PDF)