Mike morning. Good I'm Chief Creedon. Bob. morning, everyone. for Thanks, This is I'm Rick pinch-hit and to this Tree's Operating Dollar happy Officer,
most full a when first is Rick potential. company you that Executive linear, of When helping with goal and we've one lead is easy the especially through that He's ours, navigating environments a also said that became for Dollar large or CEO, of last came as transformations told as challenging transformation, again here he he seen. are to as ever Chairman true its macro primary rarely and the company this joined realize Tree year that he
us having we're on positive the control. in team the and we transformation this Rick the of in said, and leadership That deeply very impact all areas believe senior
shopping the need in in believe also low-cost convenient families We products a high-quality, deeply providing environment. to and very comfortable individuals importance of the and
and customers, we where the most to serving operate. we aware are every each have importantly, are our responsibility awesome associates And committed also serve and the communities We shareholders. to day of we
macro will several company about this will areas why we as environment talk how transformation a reflects we It well pleased year said, where our Clearly, heading we we our And initiatives also share estimates hold. are some second where I the are where results also pressure full quarter our performing and excited revise are we we to That But our financial reflects revised are updated challenging that not or continues taking and will so with customers. future. are to our about still having outlook discuss outlook. shortly.
So in the than was outlook Dollar's let's comp low our but was range. end get expected. of started. Family while came Sales positive, comp Tree's line, in lower towards Dollar we
several customer As core remains for from we seen now, Dollar's lower-income weak. demand have Family quarters
And more more middle- rates has quarter revised our pronounced primary driver interest Tree this see base impacted customer outlook. and of performance, pressures started have buying broader other the these on Dollar households. a This impact beginning we is customers. behavior quarter, and a includes second inflation, comp full of year and that upper-income to macro our the
Despite these are Tree we confident near-term win. in segment's ability Dollar compete and to pressures, the
Our customers environment. offerings that well to values are provide with matched current the exceptional
believers expansion and in strong long-term model acceleration. the inherent Tree's of strategy multi-price are growth We store Dollar differentiated its and strength of business
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general that for certain details full the just most resolve EPS The this the of second Before in to and let observing significant to will component, Predicting minutes. few after Tree's on increased the Dollar was our QX quarter, performance of of claims. related costs higher-than-expected Jeff in part us acknowledge earnings. give that a these wasn't accrual this rest on you liability claims. store claims complex, $X.XX details is quarter liability getting outlook, the we comp again June lower-than-expected into was the general our
resonate X,XXX newest have in-line expansion our are converted team evolving this on including that Tree's remains with outsized to into key our sales and Dollar are that seeing our our continues control, of the format Again, the factors focused been initiatives. within backdrop, an economic customers, lift. rollout transformation multi-price stores
rollout As based we new are earlier talked a about multi-price. learnings on and are of our with adjustments is This process, memory we making we last rounds from quarter, building constantly conversions. muscle
are to ready can example, of the line, moving that need the prioritizing full to of convert of realize work now benefits. front ahead and some stores stores For they may them the conversion we prep before range additional
it's stores our conversions rush get As few we've learnings, the taken done to we've behind process. the these right better a than the time schedule, we're to incorporate original learned but hundred to
up up assortment. a To customer for demand performing, we've biggest for comps how sense second the these new give than our most thing our stores the is at formats. the the because challenge versus the of in strategy response you converted validating The X.X% our X.X% is important quarter is that stores less keeping were now other are X,XXX with
the who and for format conversions, QX did of assortment the all QX, new had a multi-price Our X.X% comp. benefit of
Importantly, comp. these year, stores in-line the these these this new consumables with of Considering vast showed stores with X.X% and strength we very won't our X.X% assortment, the discretionary a until discretionary results. majority comp a in be early pleased later are items across multi-price
elsewhere overcome time, our expanded will some over in seeing that discretionary weakness the us believe we're also of help portfolio. offerings the macro-driven We multi-price
growth the than SKUs come. many XX% Today, a multi-price Tree driver multi-price. expansion years for of are less in-line believe across Dollar of our the portfolio We to major will be
the store driving to assortment higher addition a this meaningful per lift profit generated should In to over time. gross by dollars comp, provide item economics
with early are As innings, in believe we we many years us. about of ahead we are excited the still as these very results, of runway initial
we've reopened Cents We're XX also happy Only today, approximately of to XX as Trees. as Dollar announce locations that former
would In done end from XXX the the XX should days involved scratch fact, for all Getting a effort like to everyone their a accomplishment. thank this real multiple are tomorrow reopening another remaining teams. in XX less stores by year. hard required massive reopen the That's across of work. and than I
These with we potential. we've expanding the California the locations very strong in welcomed proven footprint from who excited and reception XX We're the stores our received Cents Southwest, with about couldn't Only be growth and are across us. more pleased great markets communities high-quality
transaction favorable terms. portfolio This to opportunity lease of assets a a was acquire rare under very
unit across network. stores economics our will We compelling synergies level these expect and positive provide
to that this talk a will Jeff in still a we about some have is minute, costs absorb unanticipated upfront great While deal.
over Dollar reopened Oklahoma, In has carts. Supply our by an to West roto our will on Arkansas after servicing Tree and making stores Chain, additional repurpose is combo Dollar year, support Memphis now carts. Dollar progress deliveries. decided And to with Memphis we Tree handle good we West Elsewhere, Marietta, Recall able be roto it and XXX making stores. next XXX also banner.
We're that is temporarily in West DC Memphis, in serving delivering in DC roto XXX our the DC end to lost stores By and and roto Chesapeake, carts, Matthews, of here North the Carolina Family DC Tree stores Dollar to out the carts is we're DC plans Virginia. with the rollout what with of our collecting X to based be learn providing on from refining stores. our of roto should way. year, We're over lots deliveries X,XXX deployments cart initial and we along approximately data
our team modernization his Bobby across great are In progress initiatives. Aflatooni IT, making and
in-store by infrastructure, Our business we've our new for access WiFi stores early connectivity, management for DCs, associates. improving X transitioned year. banners, security system X,XXX with at warehouse over Across network X went its and both first slated Internet supports live next more operations to which
Additionally, functionality. infrastructure support label to checkers we've in-store created and entirely tag printers, price the multi-price back-office shelf including an new rollout,
well program schedule and XX% food, of new brands in Our to X% Year-to-date, to we've Private across XX Family added us target. brands SKUs contributed represent Dollar and hit Family puts SKUs. sales now products, of consumable of household HBA private brands gain ahead momentum. our XX% Dollar the private year-end which quarter, continues
seeing in we see indexed. we're food, in great growth categories, Among remain potential and HBA, we under strong where
retail. a across remains major topic Shrink
shrink high, stabilizing. While to unacceptably be it appears remains
interventions to I that declare our it rate. actions pleased am is and too victory, helped While early second our quarter shrink targeted
still to high to additional arise do when value Family Tree, We ahead that shrink assortment. have multiprice the work products into the shrink adjust new are as and introduce at Dollar expectations challenges running some at more we of Dollar, we
offset decline. to quarter. Enterprise comp X.X% let's increased consolidated on ticket billion. X.X% partially a net increased to increase, traffic X.X% financial the the average move Now $X.X highlights sales On basis, from a by X.X% a
increased modestly Looking comps at Dollar increase, Tree ticket average performance offset banner, X.X% X.X% X.X% on by a a by decline. traffic
month, in While COGS they were the softened quarter. throughout each sequentially positive
part sales of While integral products towards years. shifted consumables recent retail an mission, our discretionary Dollar remain Tree's has in mix
Tree's reflects some to tied second XXX timing quarter increased demand, rollout. basis to Dollar shift latest For Part discretionary it in XX.X%. consumable differences mix in softer multi-price is of of but example, points this the part our
were introduced should in we Given lead their items times, our year, of finally the particularly items, In half discretionary shorter more the improve mix discretionary stores. many longer back consumables. as in earliest arrived the of time lead our seasonal,
very Easter-related Dollar challenges faced comp This year, comp X.X% consumable XX.X% was was QX. X.X% from was against improvement a the a challenging while on sequential comp discretionary Tree's the mix. unfavorable down we in last
like underperformed. our areas categories snacks like candy, discretionary higher-margin and and beverages categories were QX, best-performing Consumable decor crafts, apparel, floral in while home
of XX growth, Tree's the months. gains shoppers and in X.X million past quarters several Tree share unit moderated After Dollar strong quarter. net the dollar Dollar new attracted second market over
negative and customer and in in average the last offset, X.X%. months. comps positive first In segment, middle and as largely Dollar declined the traffic were the month the of Comps Family quarter ticket
traffic Customer X.X%, decreased average X.X%. traffic while increased
Our a X.X% sequential comp strong point over on year. declined comp a top QX. in QX Discretionary comp improvement increased last basis XXX consumables of X.X% X.X%,
improve evenly relevant more in personal towards Meanwhile, our home bottom beverages, trend apparel, assortment to Standouts purchase like performing discretionary. by higher best split improving OTC reflects across and frequency. categories items emphasizing and consumables, discretionary and categories health were for decor, discretionary seasonal The recent comp skewed performing with beauty including care. efforts
net quarter, and past Dollar market over Family the new months. essentially were the X.X attracted the in -- million Dollar's Family share XX shoppers corner unit flat in
benefits. Let's you also update SNAP on
Family for benefits SNAP, a of some XX% and household over are form know, of those Dollar may customers resources. including government of part assistance, eligible you As their meaningful are
worst the have of us. we now cycled We last benefit behind believe most year's reductions, and is
last better SNAP the Dollar, in we XX in for saw quarter, headwind basis significantly second of basis impact year. XXX a In the XXX the point and reduced Family QX were comp point point basis impact QX than benefits
is delivery a accessible. last Family share help do of one affordable more delivery. Dollar through This Family less customers point Dollar and mission essential and more same-day And making goods This reduces to by by giving customers logical products. with buy can transportation now to products on Instacart to collaboration our SNAP-eligible dependency SNAP, extension access online of families individuals
Now recently. tariffs other chain any us few long-standing event a contingency change that share been a In cost-effective to timely have know on let have plans supply tariff the of current issues. to some the top-of-mind thoughts We a meaningful and regime, in big topic manner. diversify our we
the have points the to changes and price to any product also in specs We market. flexibility adjust address
to freight, positive. to With Regarding freight limited ocean long-term or majority as outlook is volatility, of rate and limited our remains our our ocean container rates covered exposure annual near-term the capacity remains spot exposure vast contracts. for by domestic
proposed The Act, X salary by fully overtime to year. Labor absorbed into Regarding phase the next which scheduled we raises to workers the the July XX%, next Fair July. this changes on salary an thresholds go of Standards first effect additional January threshold is of early for phase, in under
is will there if and this implemented. over uncertainty be However, when significant change
strategies evaluating rules. address We are the multiple mitigation to proposed
And to to and wanted includes full finally, know pathways value. evaluating of we shareholder what strategic Dollar, maximize provide good we progress our Family are a on an at which let review making you range update
to we as are evaluation conclusion that holistic in the structure reach improvements we our business. Dollar June, pathway and the includes more such understand this and there of and our the discussed of transformation topic, review. Family We best as when on Dollar questions you reiterate well operational as we Tree As our many business for this update commitment multi-price
The value customers our across actions at and impact. and stores close are And year country having earlier stores to every the to Dollar underperforming the took this Dollar are focused we Family intended day. providing Family each remaining our service on
the We've like outlook we'd macro is outlook. they share today, thoughts up, adjusted consumer to to our the few our evolving better continue a to landscape. sales revised wrapping where Before to as about reflect adapt
XX our we transaction than better closed. outlook and associated the revised better the a Regarding of with estimate Cents reflects stores, first the costs Only onetime preopening portfolio, when these what had
moment. D&A to Finally, general it in adjustment is exposure the our and a which will discuss liability forecast, Jeff our also latest
customer We to are comfortable are our the and this with in against and the business reset, ability objectives. given confident are execute where we today, our
turn over to the call I'll Jeff. With that,
