Summary
Dollar Tree, Inc. (DLTR) announced on July 1, 2020, an extension of its previously implemented $2.00 per hour premium pay for its hourly-paid store and distribution associates. This premium, initially set to conclude on July 4, 2020, after a 17-week period, will now extend for an additional week, concluding on July 11, 2020. This extension is expected to incur an incremental cost of approximately $7.5 million. The original 17-week premium was estimated to cost $127.5 million, bringing the total estimated cost for this associate incentive program to $135 million. This announcement, made under Regulation FD, highlights the company's commitment to its frontline employees during the ongoing COVID-19 pandemic.
Key Highlights
- 1Dollar Tree is extending its $2.00 per hour premium pay for hourly store and distribution associates by one week, through July 11, 2020.
- 2The original premium was set to end on July 4, 2020, covering a 17-week period.
- 3The estimated incremental cost for this one-week extension is $7.5 million.
- 4The total estimated cost for the entire associate premium pay initiative (March 8, 2020 - July 11, 2020) is now $135 million ($127.5 million + $7.5 million).
- 5This disclosure is made under Regulation FD and is not considered 'filed' for purposes of Section 18 of the Exchange Act.
- 6The company reiterates its commitment to its associates through this incentive program.
- 7Forward-looking statements in the filing are subject to risks and uncertainties as detailed in other company filings.
Frequently Asked Questions
Dollar Tree is extending the $2.00 per hour premium pay for its hourly-paid store and distribution associates for an additional week to recognize their continued efforts and contributions during the ongoing challenging environment.
The original 17-week premium was estimated to cost $127.5 million. The one-week extension is estimated to cost an additional $7.5 million, bringing the total estimated cost for the entire initiative to $135 million.
No, this information is furnished under Regulation FD and is not deemed 'filed' for purposes of Section 18 of the Securities Exchange Act of 1934. It will not be incorporated by reference into other SEC filings unless expressly stated.
The filing contains forward-looking statements regarding the expanded associate pay. Investors should refer to the 'Risk Factors,' 'Business,' and 'Management's Discussion and Analysis' sections in Dollar Tree's Form 10-K filed on March 20, 2020, and subsequent filings for a discussion of risks and uncertainties that could affect future results.