If we compare that to a lot of the results from the other consumable retailers, it was a bit slower and perhaps suggests that the Family Dollar's market share in those categories was lagging behind others. Nice quarter here. This was comprised of a 21.3% increase in average ticket, partially offset by a 12.3% decline in transaction count. Net interest expense is expected to be approximately $37 million in Q4 and $151 million for fiscal 2020. Our sales continue to be delivered by average ticket, which increased 19% as consumers continue to consolidate trips. Work at dollar tree dollar tree has … This is resulting in better sell-through and reduced markdown exposure. So there was so much noise around other stores and/or themselves that is really hard for us to determine the lift that was associated specifically to these products. offering to nearly 500 stores, starting spring 2021. We have a strong balance sheet and continue to grow the company by investing in both new and renovated stores, our supply chain and technology to improve the customer experience. And it also gives us enough stores to really see how it continues to grow and improve and how our customers respond. It's really about bringing in these products into a DC. You pushed out some omni-channel initiatives, it looks like you're looking at BOPIS for Family Dollar. New locations typically ranges between 8,000 - 12,000 gross square feet. It also completed the renovation of 371 Family Dollar stores to the H2 format. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. And we took the same pace as we were looking in our snack zones at Dollar Tree. Selling, general and administrative (SG&A) expenses, as a percentage of sales, increased 20 bps to 23.7% due to incremental pandemic-related costs of $35.3 million, which primarily related to the payment of premium wages to frontline workers, field management bonuses, and store cleaning and PPE supplies. But have you been surprised by the magnitude of change in discretionary versus consumable mix? With me on today's call will be our President and CEO, Mike Witynski; and our CFO, Kevin Wampler. Obviously we've got significant leverage across both businesses. In third-quarter fiscal 2020, Dollar Tree opened 143 stores, expanded or relocated 34 outlets, and shuttered 16 stores. When factoring in bonuses and additional compensation, a Cashier at Dollar Tree can expect to make an average total pay of $9 . Posted on July 31, 2019 by Darmawan . and see if we can find out things like what people buy at same time during checkout. Scot Ciccarelli -- RBC Capital Markets -- Analyst. We are seeing greater sales of seasonal product as it hits our stores. I think, the other thing, Brad, is obviously as Mike laid out early this year, focus on discretionary business in the Family Dollar store. As a percentage of net sales, distribution costs were flat compared to the prior year quarter. Thanks for the question. These benefits were partially offset by payroll expenses, which increased approximately 35 basis points, driven by COVID-19 cost of $11.4 million or 40 basis points from premium paying bonuses and increased incentive compensation based on performance. As of Oct 31, 2020, the company operated 15,606 stores in 48 states and five Canada provinces. We are able to be a convenient shopping trip to meet the needs of those staying at home, eating at home, working at home and/or learning at home. Dollar Tree Hourly Pay Rate. We want to really focus on step changing items that we're selling for $3 and $5 that are really $7 and $10 items anywhere else in retail. items and seasonal merchandise. Dollar Tree saw an improvement in merchandise mix and lower freight costs as a percentage of sales, partially offset by reduced markup. The consumable side of the business delivered another positive quarterly comp at 4.1% and discretionary comp was strong at 14.6%. Family Dollar operates under a landlord friendly net lease structure. How do you think about that? We believe this is directly related to shopper mobility, many people are working from home, learning from home, are simply not going out as often. And then, the third thing we can see is the basket size. Merchandise costs, including freight, improved 60 basis points, primarily due to a balanced improvement in merchandise mix and mark-on. We think it's critical. The average hourly wage for a Store Manager at companies like Dollar Tree in the United States is $23 as of November 25, 2020, but the range typically falls between $20 and $27. November 28, 2020 admin Retail Store Jobs 0. And we do have time for one or two more questions. On our March call, I discussed the challenge and opportunity to enhance the discretionary performance at Family Dollar through improved product assortment, sharper price points and greater values. Enterprise same-store sales increased 5.1% on a segment basis, comps for Family Dollar increased 6.4% and for Dollar Tree increased 4%. But in general, Q4 does tend to be a higher discretionary period for Dollar Tree in particular. And then, if I could, just around Dollar Tree Plus!, I want to see if there's any incremental color that you could share in terms of how the stores were performing relative to the overall chain from a comp perspective when you roll out Dollar Tree Plus!? And I think it had people sort of thinking like maybe this is not something that would make sense. So it's going to be a continued focus, just like we talked about early this year. We ended the quarter with 15,606 stores. Okay. You can quickly filter today's Dollar Tree promo codes in order to find exclusive or verified offers. So we actually saw a little bit there. Thanks so much, guys. Driven the robust third-quarter fiscal 2020 performance, its shares gained 7.6% in the pre-market session. And I know we've talked in the past about the return to 35% to 36% gross margin. You look at -- if you can bring in technology and self scanning to help leverage some of your resources that way. Shelby. Thanks, Mike, and good morning. Our operators in the store, technology, distribution and the product our merchants are buying are all the things that we actively are going actively are going to be working on. I think, we will keep going after driving that basket size and when they're in our stores drive it with intent. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. So a lot of things like that have done very well. We certainly have momentum in our business. The year-over-year improvement was due to the following. Please limit your questions to one and one related follow-up question. The performance of Crafter's Square offering that was rolled out into approximately 2,400 stores in Q1 of this year has been outstanding. We did see sequential improvement in consumables throughout the quarter as inventory flow of high demand products improved. Good morning and welcome to our call to discuss Dollar Tree's performance for the third quarter. So, which again, mix moved about 300 basis points year-over-year toward discretionary. Do you have a target at this point for how many H2 renovations you'll do next year? Thanks, Kevin. So shrink may not be as big a help. And maybe a little counterintuitive of the fact that we saw improvements in freight, but you have to remember, a year ago, from a compare standpoint, we saw a pretty big increase a year ago from a surge standpoint. It sounds like you're excited. For the third quarter, the SG&A rate for the Dollar Tree segment as a percentage of net sales increased to 22.2% compared to 22% in Q3 of 2019. But first and foremost, it was a positive low single-digit, so we continue to grow our consumable sales. So you're bringing in and creating slots for the different items. We can tell that the sales are growing compared to when the sales of the consumable items. The key elements of our improvement plan include: improved merchandising and marketing, raising stock -- raising store in stocks, upgrading brand standards, creating a selling culture and refining our format strategy. Dollar Tree’s fiscal third-quarter operating income included $46.3 million of additional operating costs related to the coronavirus outbreak. We believe we have the ability to better serve customers across North America. I think it could be a benefit as we go forward into Q4, albeit not to the same rate on the Family Dollar side because we were cycling a fairly big increase in the accrual rates in Q3 a year ago, but I do believe there can be some improvement there. So what does that say about where we go from here? Customers are continuing to shop early to celebrate events and holidays. A webcast of the call is accessible through Dollar Tree's website and will remain online through Monday, November 30, 2020. Additionally, we completed more than 550 real estate projects, paid down the $500 million drawn on our revolving line of credit and repurchased $200 million in stock. In response to an earlier question, I think it was Ed on Dollar Tree Plus!. Results may differ materially from those indicated by these forward-looking statements due to various factors included in our press release, 8-K, 10-Q and Annual Report, which are on file with the SEC. So have you gotten over the hump where you think you've controlled shrink? It is still very early, but I am encouraged by our start to the current quarter. Our merchant teams are harmonized to act with clarity, focus and speed. Combined cash and cash equivalents at quarter end totaled $1.12 billion compared to $539.2 million at the end of fiscal 2019. And it's hard for me to -- it would be a different number by state and geography. We'll take our next question from Paul Lejuez with Citi. Thank you, Randy. Examples include: we are experiencing improved accessibility to a broader base of manufacturers and vendors by going to market as a 15,000-plus store chain. Additionally, Dollar Tree plans to expand its Dollar Tree Plus! Factors impacting the segment's gross margin performance included merchandise costs, including freight, improved by approximately 95 basis points. Yes. In third-quarter fiscal 2020, the company repaid the remaining $500 million on its revolving credit facility. Outstanding debt as of October 31st, 2020 was $3.55 billion. Thank you. The team continues to work cross-functionally to build out those assortments and we saw our best Halloween sell-through in the time we've owned Family Dollar this year. Ticket was up 19% this quarter and 22.6% last quarter. How has that customer response changed? I would tell you, we are not where we need to be overall yet. Generally, as you go into Q4, I would tell you, where I do expect gross profit to improve year-over-year, but not at the same rate as on a consolidated basis as it did in Q3 just based upon some of the things that we won't necessarily repeat, which we've talked about today. The team -- the transportation team is working really hard to mitigate every dollar they can, but I don't expect it to be the same type of benefit in Q4 than it was in Q3. Hey, Matt. I don't think there is going to be a light switch that's going to turn on and all of a sudden, they'll go back to their old shopping patterns and activity. Two really good questions. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. The quarter included $28.6 million in COVID-related costs. Hey, Scot. Thank you for taking my question. The team delivered an earnings per share increase of 28.7% compared to the prior year's quarter. Thanks for taking my question. And I think it's going to be slow to change. The tax rate is expected to be 22.3% for the fourth quarter and 22.8% for fiscal 2020. Walmart also announces hiring. And operating margin increased 50 basis points to 12.7%, which represents a 300-basis-point improvement from Q2. And then, related to that, are there any supply issues with consumables or is that just not where your -- what your customer is looking for in today's environment? So we definitely are going to build that capability at both Family Dollar and Dollar Tree. Any more detail in terms of what you've seen from a sales lift or a margin impact in the stores where the product is currently? Target Corporation TGT currently has a long-term expected earnings growth rate of 7.2% and a Zacks Rank #2. I know you pared back a little bit this year in the COVID backdrop? So, we think that they're responding favorably because the products that we are buying are selling through at the rate we expect and it's continuing to grow. So, quarter-to-date, we are seeing some of the stack up right now. And if there's any incremental color perhaps related to that on incrementality either in terms of shoppers or kind of basket size. And it's in the paper, the hand sanitizers, the wipes and some consumable related products. Thanks. The company currently plans to renovate about 1,250 Family Dollar stores in fiscal 2021. Well, I think, the first answer is that we're organizing around the strategy. You've also talked about introducing delivery at Family Dollar. Thank you for taking my question and congratulations on a great quarter. And that really speaks to obviously things like Halloween, Mike spoke to, had a great sell-through; speaks to Crafter's Square, which has just been a dynamic element in our stores. As it relates to freight, I would tell you, while it was a good guide for us in Q3, I expect that to be somewhat tempered in Q4 to your point. Actions taken in 2019, including the consolidation of store support centers and the alignment of organizational leadership under one team are paying off. We have less markdowns. Regarding the new customers, what we're seeing is just overall, it's very similar to new and old as I shared in the prepared remarks that when the customers are coming into the store, they are shopping with intent. During Q3, Dollar Tree Canada opened two new stores, bringing the total to 230 stores north of the border. And then just a follow-up, maybe a silly question, but why don't you like the even numbers $2 and $4 when you think about that Dollar Tree Plus! Yeah, hi. Maybe just to touch base quickly on some of the gross margin trends. Hey, guys. And I guess, my follow-up is a little bit long-term, as we sort of think about 2021 and beyond. Dollar Tree is a chain of discount stores that sell all items for $1.00 or less. Have you gotten to a point like this where you expanded the test and then subsequently have had to roll back the test? These enterprise results were comprised of 5.1% same-store sales increase, a 150-basis-point improvement in gross profit margin and a 30-basis-point increase in operating profit margin. So that is going to be going forward. We now have a new merchant team dedicated to these multi-price items that will benefit both banners. ET. Net interest expense is expected to be approximately $37 million in Q4 and $151 million for fiscal 2020. Payroll costs increased approximately 50 basis points based on payroll expenses increasingly -- increasing $17.3 million or 50 basis points for costs associated with COVID-19 premium pay and bonuses. The company started testing this multi-price initiative in mid-2019 through the introduction of multi-price assortments in more than 100 stores in Southwestern markets. Our merchants continue to hit a home run on identifying and sourcing great products that customers love at the Dollar price point. We never went forward with, but no, not to this level. Dollar Tree's comp represented its best quarterly same-store sales performance since Q1 of 2018. Our Canada President and Chief Operating Officer, Neil Curran, and his team are hitting on all cylinders. Is there any stocking up going on at the Family Dollar banner? Could you perhaps give us color in terms of what percentage of your employees are in minimum wage? Hourly rate can vary widely depending on many important factors, including education, certifications, additional skills, the number of years you have spent in your profession. See all … I would also like to recognize Dollar Tree Canada. Dollar Tree ended the quarter with cash and cash equivalents of $1,118.3 million. We're going to have the right assortment. We'll take our next question from Chandni Luthra with Goldman Sachs. Third quarter was quite healthy in the mid-20% range. Cashier salaries at Dollar Tree can range from $4 - $89. We do see they're buying earlier and decorating their homes. Canada exceeded its plan of sales, gross margin and operating income delivering low double-digit comps in both consumables and discretionary, including very strong seasonal sales on Fall Harvest and Halloween. Prior year rate reflected a larger benefit from the reconciliation of the tax provision to the tax returns. And remember, the linear footage, it's still 10% to 11% of the total store. I think -- way to think of it. Comps growth was backed by a 6.4% improvement in Family Dollar stores and a 4% rise in Dollar Tree. Yeah. Current quarter rate reflects higher state tax rates and higher income amounts taxed at the statutory rate. It's just that we didn't show you all the backdrop of the early testing. A webcast of the call is accessible through Dollar Tree's website and will remain online through Wednesday, September 2, 2020. Gross profit margin improved 70 basis points to 34.9% versus Q3 a year ago. Nearly every business, family and person has had to adapt and react to what is currently a new normal. Business Retail Oct 26, 2020 3:47PM PT How Much Dollar General, Dollar Tree and More Low-Price Retailers Pay Per Hour On Average Offer is valid for UPS ground shipping only (approximately 4-5 days for delivery). An example is our apparel category, where we delivered a significant improvement in sales and margin with material less inventory. We plan to add Crafter's Square to the remainder of the Dollar Tree stores in early 2021. We continue to like the results we are seeing with the Dollar Tree Plus! And there's still some upside capacity there. Our 15,000 plus stores are close to home and easy to shop, providing great convenience and we offer a broad assortment of tremendous values to meet both needs and wants. I continue to be very pleased with the team's overall progress. Michael Montani -- Evercore ISI -- Analyst. And can you continue to see some benefit there? Before we go to your questions, I'd like to wish all of our stakeholders a safe and happy holiday season. Returns as of 12/31/2020. So -- and again, I think we saw some leverage with the comp on occupancy, which, again, obviously, with a forward comp, we would expect leverage there. Our gross margin return on investment or generally [Phonetic] at Family Dollar is the highest it has been since we have owned the business. In an environment where individuals are concerned about their health and exposure, about their income and jobs and about not knowing what is next, I firmly believe that Dollar Tree and Family Dollar are part of the solution. I'll now turn the call back over to Mike. Enterprise same-store sales (comps) grew 5.1%. Yes. That's great. how best to think about puts and takes in modeling fourth quarter gross margin at Dollar Tree? But the good news is, we have some momentum, which is very, very positive. 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