Dltr

Dollar Tree, Inc. (DLTR)

Financial Statement Review

Dollar Tree, Inc., a Fortune 500 company, is an American chain of discount variety retail stores

that sells every item for $1.00 or less. In fiscal year 2011, they continued to see demand for

basic, consumable products do to the pressures of the current economic environment. As a

result, Dollar Tree continued to shift the mix of inventory carried in their stores to more

consumer product merchandise which they believe increased the traffic in their stores, helping to

increase their sales even during the current economic downturn. Net sales for fiscal year 2011

were strong at $6.63 billion; an increase of 12.7% from 2010. In the last five years, net sales

have increased at a compound annual growth rate of 11.8%. In addition, operating income

increased by $125.8 million in 2011 and the net income rose 18.0%, to $488.3 million.

Since its founding in 1986, Dollar Tree has expanded its store base every year. The primary

factors contributing to their net sales growth have been new store openings, an active store

expansion and remodel program, and selective mergers and acquisitions. In 2011, they opened

278 new stores and relocated and expanded 91 more - representing a 6.9% increase in selling

square footage. They ended the fiscal year with 4,351 stores, up from 4,101 at the end of 2010.

The expansion included installation of freezers and coolers in 376 stores, making frozen and

refrigerated product available in 2,220 stores. Not only does the continual improvement increase

sales, but it also creates jobs and growth opportunities for their associates.

Besides the ongoing expansion, several other key events have had or are expected to have a

significant effect on Dollar Tree’s operations. In October 2011, the Board of Directors

authorized the repurchase of an additional $1.5 billion of their common stock. At the end of

fiscal 2011 they had approximately $1.2 billion remaining under Board...