Q: What is Dollar Tree (DLTR) Q1 2024 Earnings Call Transcript Summary?
**Dollar Tree (DLTR) Q1 2024 Earnings Call Summary**
**Here are the specific viewpoints from the earnings call:**
**Bullish Points:**
1. First-quarter adjusted diluted EPS of $1.43 was at the higher end of the outlook range.
2. Net sales increased 4.2% to $7.6 billion.
3. Dollar Tree comps increased 1.7% on a 2.8% increase in customer traffic.
4. Dollar Tree's consumable comp was 7.4%.
5. Dollar Tree took meaningful consumable market share, with dollar growth exceeding the market by 660 basis points and unit growth exceeding the market by 520 basis points.
6. Family Dollar's adjusted operating income increased by 32% from last year.
7. Insurance recoveries are expected to fully offset losses related to the Marietta distribution center incident.
8. The balance sheet remains strong with cash and cash equivalents of $618 million and long-term debt of $3.4 billion.
9. Generated $224 million in free cash flow in the quarter.
10. Returned $310 million to shareholders by repurchasing 2.5 million shares.
**Bearish Points:**
1. The tornado destroyed the Dollar Tree distribution center in Marietta, Oklahoma, leading to incremental operating costs.
2. First discretionary comp decline at Dollar Tree since the first quarter of 2020.
3. Weaker discretionary demand, particularly in the Dollar Tree segment.
4. Adjusted operating income decreased by 3% from last year.
5. Adjusted operating margin decreased by 45 basis points.
6. Gross margin improvement was partially offset by unfavorable sales mix and elevated shrink.
7. Adjusted SG&A increased primarily from temporary labor, higher depreciation and amortization, and sales deleverage.
8. Recorded a $70 million loss related to inventory destruction and a $47 million loss related to property and equipment destruction at the Marietta distribution center.
9. Full-year net sales for Family Dollar are expected to decline by 1% to 3% on a year-over-year basis.
10. Adjusted EPS for the full year is now expected to be in the range of $6.50 to $7, reflecting incremental operating expenses associated with the loss of Marietta.
For more information about Dollar Tree's earnings call, you can read the relevant news: Dollar Tree (DLTR) Q1 2024 Earnings Call Transcript
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