CHESAPEAKE, Va. — Dollar Tree Inc. reported consolidated net sales of $6.77 billion in the quarter ended July 30, up 6.7% from a year earlier. Store comps increased 7.5% in the Dollar Tree chain, 2% in Family Dollar and 4.9% companywide.
The performance reinforces the relevance of its brands for millions of households coping with inflation’s effect on consumer prices, Michael Witynski, Dollar Tree’s president and chief executive officer, said on an earnings call. “There are signs of trade-down to our stores, and we are focused on value proposition for both banners in this environment. Like many retailers, we are seeing a shift in consumable preferences as many shoppers gravitate to needs-based consumables.”
Witynski said recent personnel moves have positioned the discounter to seize the opportunity.
“We are undergoing a period of change, exciting change, and we have accomplished a great deal in the first 100-plus days since our board was reconstituted. A few months ago we announced a number of leadership changes. We are actively engaged in recruiting leaders to the organization with the right perspectives, experiences and skill sets to help transform our company. The great opportunity before us has attracted the attention and interest of the strongest leaders in retail. In just a few months, we have filled several key roles with exceptional talent, including Larry Gatta as Family Dollar’s chief merchant, John Flanigan as our head of enterprise supply chain, Bobby Aflatooni now leads our enterprise IT department [and] Jeff Davis will be joining Dollar Tree as our new CFO.” Under review are candidates for the roles of chief operating officer and general counsel, he said.
“The teams are gelling and the new leaders are hitting the ground running.”