Dollar Tree, Inc. (NASDAQ:DLTR) Q4 2014 Earnings Conference Call - Final Transcript

Feb 25, 2015 • 09:00 am ET

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Dollar Tree, Inc. (NASDAQ:DLTR) Q4 2014 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] And we'll take our first question from Michael Lasser with UBS.

Analyst
Unidentified Participant

This is Max Hayground [Phonetic] for Michael Lasser. Thanks a lot for taking our question. As we kind of look at the full year and your operating margin, you guys have performed pretty solid gross margins, but as you are bringing on Family Dollar, how should we start to look at that, especially as you're going through the heavy lifting of the integration starting with banners and systems before we get to maybe some of the logistical synergies. Thank you.

Executive
Kevin S. Wampler

Hi, Max, this is Kevin. Obviously, we're not a point to specifically speak to those type of metrics at this point in time. As Bob pointed out, there is a lot of integration work being done, teams comprised of folks from both organization working very hard, determining where the efficiencies can be gained and taking the best practices from both companies and looking at the way we can improve.

So obviously we talked about, we talked about $300 million run rate synergies at the end of year three and beyond what we've said today, we're not really ready to say anything else as it relates to specific numbers of the ongoing combined organization.

Analyst
Unidentified Participant

Okay. Thank you. And also just with your online business, it seems like you guys have been doing a lot of great performance there with Dollar Tree Direct and you mentioned that the demographics of that customer might be a little different, could you maybe expand a bit on that?

Executive
Kevin S. Wampler

Well, I think that the demographics are Middle America as people are looking for value it's -- in addition to that, it's small businesses, its organizations that need larger quantities, they may need full case quantities, our average ticket on the online business is much higher, it's much higher than it is in our stores. So it's really broad swath of Middle America with small business and organizations and schools and individuals that just may need a little extra for a party or just see the great values that we have.

In addition to that Max, it's a terrific opportunity for us to connect with our customers directly to understand who our customers are, to communicate through our value secrets club to know who they are, what they want, what they want to buy, and to share with them our upcoming promotional events, what's new in our stores and just the Dollar Tree and deal story. So it really serves both means to sell product, to serve the customer and also to continue to drive home the Dollar Tree Brand.

Analyst
Unidentified Participant

Thanks a lot. I really appreciate it.

Executive
Kevin S. Wampler

Thank you, Max.

Operator
Operator

And we will take our next question from Anthony Chukumba with BB&T Capital.

Analyst
Anthony Chukumba

Thanks for taking my question. I think my first question was, could you give us a little bit of an update on deal? I know you mentioned that Dollar Tree Canada had its strongest comp yet and I just wonder