Good day and welcome to the Dollar Tree, Inc. fourth quarter earnings conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Randy Guiler, VP of Investor Relations. Please go ahead.

Thank you, Jordan. Good morning and welcome to our call to discuss Dollar Tree's fourth fiscal quarter and fiscal year 2020. With me on today's call will be our President and CEO, Mike Witynski; and our CFO, Kevin Wampler. Before we begin, I would like to remind everyone that various remarks that we will make about expectations, plans and prospects for the company constitute forward-looking statements for the purposes of the safe harbor provision under the Private Securities Litigation Reform Act of 1995. Results might differ materially from those indicated by these forward-looking statements as a result of various factors included in our most recent press release, most recent 8-K, 10-Q and annual report, which are on file with the SEC. We have no obligation to update forward-looking statements, and you should not expect us to do so. Following our prepared remarks, we will open the call to your questions. [Operator Instructions] I will now turn the call over to Mike Witynski, Dollar Tree's President and Chief Executive Officer.

Thank you, Randy. Good morning, everyone. Thank you for joining me today. What a year. I believe that from now -- that years from now, many of us will reflect upon 2020 as being one of the most unique, unpredictable and challenging business environments of our career. My sincerest gratitude goes out to our 195,000 plus associates working in more than 15,600 Dollar Tree and Family Dollar stores and in 26 distribution centers and to our field leadership teams as well as our store support team here in Chesapeake, Virginia. Your commitment and dedication to protect and serve our customers is critical to our company's success. As an essential retailer in the value segment, we will continue to be part of the solution for millions of households across North America. Additionally, I would like to recognize our business partners, both supply chain and suppliers, for their efforts to support our business throughout the year. In 2020, we exceeded $25 billion in annual sales for the first time, and we have a long runway of growth ahead of us. As our business grows, so does the need and support from each of our business partners. We appreciate your continued support. The recent trends have been encouraging. COVID cases are on the decline, and vaccinations are on the rise. However, we will continue to be relentless in our efforts to protect each other until this pandemic is behind us. I am very pleased with the team's operating performance for the fourth quarter, highlighted by solid same-store sales increase, improved gross margin and expense leverage. The team delivered EPS increase of 310% compared to the prior year's quarters or 19% when adjusted for discrete charges in the prior year. Our results included a 4.9% enterprise comp increase, an 80 basis point improvement in…

Thank you, Mike, and good morning. For the fourth quarter, consolidated net sales increased 7.2% to $6.77 billion, comprised of $3.71 billion of Dollar Tree and $3.06 billion of Family Dollar. Enterprise same-store sales increased 4.9% or 5% when adjusted for Canadian currency fluctuations. Comps for Family Dollar increased 8.1% and Dollar Tree segment increased 2.4%. Overall, gross profit for the enterprise increased 9.8% to $2.15 billion, and gross margin improved 80 basis points to 31.8%. The gross profit margin for the Dollar Tree segment decreased 10 basis points to 36.1% when compared to the prior year's quarter. The factors impacting the segment's gross margin performance include distribution costs increased 40 basis points primarily due to higher payroll costs and depreciation. This includes the continued ramp-up of the 2 new distribution centers as well as $4.4 million or 10 basis points of COVID-related expenses primarily premium pay and bonuses. These higher DC costs as a percentage of net sales were partially offset by a 20 basis point improvement in markdowns and a 5 basis point improvement in shrink. Merchandise costs, including freight, also improved 5 basis points. Improvements in merchandise mix and markdown were mostly offset by increased freight costs. Gross profit margin for the Family Dollar segment improved 200 basis points to 26.6% in the fourth quarter. The year-over-year improvement was due to the following: markdown expense improved 100 basis points due to lower promotional activity and improved sell-through of seasonal merchandise and apparel; occupancy costs decreased approximately 50 basis points from leverage on the 8.1% comp sales increase; shrink improved 35 basis points on improved inventory results; distribution costs improved approximately 15 basis points compared to the prior year quarter; the current year quarter included approximately $3.2 million or 10 basis points of COVID-related expenses, primarily premium paying…

Thanks, Kevin. Again, I'm extremely proud of the team's efforts for fiscal 2020. For the year, our customer satisfaction scores are improving, and we are experiencing our lowest store manager turnover rates in many years. The team delivered an enterprise comp increase of 6.1%. Gross profit increased by more than $740 million, a 70 basis point improvement. We delivered our SG&A costs, which were flat year-over-year, as a percent of net sales despite incurring $279 million or 110 basis points in COVID-related costs. Enterprise operating profit margin improved 70 basis points to 7.4%. The company repurchased 400 million shares and ended the year with more than $1.4 billion in cash on the balance sheet. And we delivered annual diluted EPS of $5.65. This morning, we announced our newest and tested concept that is working remarkably well in rural markets. What we refer to is our combination or combo store format. As I have said in the past, we will continue to refine strategic store formats designed to serve more customers in all types of geographic markets while improving store productivity, margins and returns. The Combination Store leverages both Dollar Tree and Family Dollar brands to serve small towns across the country. The store combines Family Dollar's great value and assortment with Dollar Tree's thrill of the hunt and $1 price point, creating a new format targeted for populations ranging from 3,000 to 4,000 people. These are markets where we traditionally do not open a Dollar Tree store alone. We opened the first test Combination Store in late 2019, followed by 2 additional test stores in early 2020. Closely analyzing the store performance and customer feedback and utilizing learnings, we refined the concept. Between July 2020 and calendar year-end, we opened or renovated 32 additional stores. And currently, we have nearly…

[Operator Instructions] It looks like we have our first question on the line from Kelly Bania from BMO Capital.

Wanted to ask just first about payroll and the freight costs that you called out. And just if you could help us understand at a greater level of detail how you're getting to that $45 million to $50 million impact from payroll and $80 million to $100 million on freight. And I think the comment was that these pressures are expected to be more than offset by other factors. So just want to make sure I'm understanding -- are you suggesting that you are expecting EBIT growth in 2021? Or maybe you can just elaborate on that.

Sure, Kelly. It's Kevin. Yes. So we wanted to give some color, obviously, as to what's going on. Obviously, not giving specific guidance given the many variables that are out there right now. The $45 million to $50 million that we spoke to in regards to payroll is very specific. Our operations, labor department looks at that by state. We know there's approximately 30 states affected this year. We know our labor pool in those states. We know how many hourly people we have, and we go through a calculation on that. Now that's no different than any other year. This is just really the first time we've given you a number as to what it relates to. We have done -- we have faced these same type of increases over the last couple of years. But this time, we were just trying to put some graphics around it to help people understand the size of that. As it relates the freight costs, again, our current projection is roughly $80 million to $100 million, really fairly comparable across both banners. It is much more import related than domestic related so it's been probably 75-25, 80-20 as far as import related at this point in time. And that is just based upon current market conditions that we currently face. As many of you know, we go to market with our freight contract or import freight contracts in the spring here. These are negotiated in March and April and -- to go live then in May. So really, a lot has been talked about in the marketplace in general. So I don't think there should be a lot of surprise around it. And again, we're just trying to give an idea of the size of that. And then obviously, if we look at the offsets, so obviously, COVID costs in and of themselves last year as we talked about were $279 million. If we -- even if we said we spent at the same rate we did in Q4, which is roughly $25 million, we'll spend, obviously, significantly less going into the new year. So I'll let you guys do the math on that at the end of the day, but those are the puts and takes. And obviously, it goes beyond that. Obviously, driving sales -- I think we obviously talked this morning about how we'll continue to drive sales. But also there's other items. When you look at shrink as a potential good item after maybe a second year in a row after having an upswing a couple of years prior to that. So some good progress being made there. We're still not where we think we can get to, but really proud of the teams, the operations teams and the asset protection teams that have been working hard to mitigate the issue that we've faced there.

That's very helpful. And then just wanted to ask, on the Combination Stores, any color you can give us on the new store economic model, the cost of the stores, the size and sales per square foot and how the returns maybe compare to the H2s.

Yes. So right now, the stores are about 10,500 square feet. So they're slightly bigger than what a normal Dollar Tree would be. And the -- we like the economics. Our sales are exceeding utilized share -- the comp sales are 20% or greater on average. And when we're going into a new market, they're performing better than our expectation of when it was just a Family Dollar as a stand-alone store. And you can imagine the margins are enhanced because now you've got the mix of Dollar Tree product in there at $1 price point and in the categories that normally are higher margins. And you're leveraging it with 1 store manager and 1 store team and delivering 2 brands to a customer and to a small town. And we like the results.

[Operator Instructions] We'll take our next question from Joe Feldman with Telsey Advisory Group.

Great. I wanted to ask on freight again. Kevin, as you mentioned, you guys do renegotiate freight every spring. And I guess, I'm a little confused why you'd be seeing so much pressure, at least in the fourth quarter. I guess are they allowed to put surcharges on your negotiated rates? Or -- and I understand, I guess, you're assuming it will be just higher pressure for this year. But maybe you could share a little more color on that.

Sure, Joe. As you look at it, we contract for a certain volume of containers. It's been a big year from an import standpoint, obviously. And so at some point, if you exceed your volume, you do pay more potentially based upon on the marketplace. The spot market, and you guys see all the same information we see, has been up significantly in general. And again, then a part of it is supply and demand. There is a backup in China, in Asia. And to get goods move in some instances, people are paying more. And it's not just us. You've heard other retailers over the last 2 weeks speak to it as well. So it's not a Dollar Tree-specific issue. It's an industry issue. And our team is working through that and moving our goods. We've been able to keep our seasonal goods coming in, and feel good about that. But in general, based on where the marketplace is projected to be, that is our best projection as we sit here today.

Got it. And then a follow-up question. As you think about '21, and I know you're not giving too much detail on guidance. But I guess, how should we think about the profitability of the 2 different brands? Family Dollar has been much better. We've seen a lot of improvement there. Should we expect continued greater improvement within the Family Dollar profitability versus kind of stable at the Dollar Tree business?

Well, Joe, I think as we think about it, I mean, we obviously always think there's opportunity in both. Even if we've made a big leap this year with the Family Dollar operating income going in the right direction, it's still not where we want it to be ultimately. We've made big strides. And we do believe, obviously, as we began 2020, we spoke a lot about discretionary business and building that side of the house and us being a more important player in building that kind of muscle. And obviously, the pandemic helped with that, but we do believe that we've made strides. And again, I think Mike, in his comments, talked about the fact that are just -- we're growing twice the market in that piece of business. So that's a great opportunity to continue to go. But that doesn't mean we don't think there's other opportunities as well. You look at the -- as we talk about the combo store, we think that's a great opportunity. We believe there's, at a minimum, 3,000 locations out there where we can play an important role in our customers' lives on a day-to-day basis and be their place to shop for many, many things. They may not live close to a large metropolitan area. And so it's a big opportunity as we think about it. So a lot of opportunity there. I think on the Dollar Tree side, I think, again, we always believe there's opportunity. And Dollar Tree has evolved over the years, as you well know, in the sense of we always reinvent ourselves. Most recently, we've talked about Snack Zone. We've talked about our Crafter's Square initiative. And again, some of these initiatives are traffic driving. Some of these are really margin driving and -- but it's always relevant to the consumer, and the $1 fixed price point does not go out of style. People love the value it provides. And now we can add upon that, obviously, taking the Dollar Tree Plus! opportunity, expanding into 500 stores, continuing to learn and build upon that and really be able to take that and benefit both banners by taking that $3 and $5 product.

Yes. Joe, this is Mike. I agree with Kevin. I am so excited about 2021. And I absolutely believe there's growth for both banners. And Kevin hit on them. I'll start with Family Dollar. We are absolutely going to come out stronger on the backside of the pandemic than on the front side for a lot of reasons. And I think about what Kevin was speaking to on March 4 of last year, our comp sales in consumables were strong low single-digit quarter after quarter. And where we needed to focus our energy was on our discretionary side. And it was a year ago in December that Rick McNeely was assigned to be the lead merchant for both banners and really leverage synergies where possible and bring disciplines and capabilities to the Family Dollar team. So during this pandemic, we didn't just survive through it. We thrived through it and changed our disciplines and strategies. And we looked at -- in our merchandising, we looked at our basic assortment of what we're carrying by sharper price points. We got better values. And we're not going to go back to the old way. We're going to improve upon that. And the pandemic really accelerated our inventory from the past and really flushed that through last year. And then our new receipts coming in on all the disciplines that I just got done describing are really selling it at a great mix, stronger sell-throughs, less markdowns and better turns. The second thing is our stores. You heard us talk about our customer satisfaction scores across the board for 3 quarters are improving. We've invested a lot in getting better initiatives and execution in our stores, and our customers are responding. And we'll have that carrying forward compared to going into the pandemic.…

And we'll take our next question from Paul Trussell with Deutsche Bank.

I guess I wanted to maybe just follow up your comments with maybe some bigger picture questions then looking beyond 2021. Just curious on -- obviously, 2020 was a pretty unique year, to say the least. So just curious, as you kind of move and turn the corner here, if you can give some comments on long-term margin potential as we think about the Dollar Tree and Family Dollar banner, given what's transpiring on the merchandise front and with all the new formats. What would be the timetable do you think to be able to navigate all the headwinds and perhaps return to some of the levels we've seen in prior years?

Yes. Paul, this is Kevin. I'll start, and I'll let Mike chime in if he has anything. But I guess, I think about it in a couple of ways. One, one of the words you guys have all heard me use before, and I think it's very true within our company, is continuous improvement. We go into every year expecting to improve in all aspects of our business, and whether that's driving sales, reducing costs, being a more efficient company. And so that's just the way our mindset is. And so while I don't know that I have a timetable to give you in a sense of certain milestones, as I sit here today, and again, part of that is, obviously, the uncertainty of what's going on out there in the world with the pandemic. And -- but we would expect continuous improvement. And I think Mike has shared a lot of that with all of you this morning and the idea. So we entered the year. The expectation is we're going to improve our operating income for both banners when we think about it. Whether we can do it with some of the things going on in the world, that's yet to be seen. But there's a great opportunity. And I think that's the most important thing, is the way we always want to improve.

Yes. Paul, I agree with Kevin that we will continuously improve and drive our path on Family Dollar's side. As you've heard me, we have not arrived yet, and there is upside because we just cycled through our first year, and we are -- continue to look at our assortment, our allocations and improve upon the products that we have and price points. And I think on the Dollar Tree side, we have things ahead of us, just like the tariffs. Once we got it in front of us, we know how to manage around it. And I would say the short term, the freight thing, once we're aware of it, we're going to figure out how to mitigate it and grow the margins and grow Dollar Tree. Dollar Tree, for 14 years, has had a quarter-after-quarter of kind of positive comp store sales growth, except for first quarter last year, and here we are cycling that right now this year. So yes, I feel very strong that we can continue to grow both sides.

And this year, you're opening up maybe 600 stores and remodeling like 1,250 Family Dollars or so. Is that, in your mind, kind of a good go-forward run rate? Or do you see a scenario where you guys may actually want to accelerate in the future given the different formats and opportunities that you have? And just any updates on long-term store count potential?

Yes. I'll comment on it and then flip over to Kevin to add. But from my perspective, we will absolutely -- we're going to continue -- we have 1,250 renovations this year. Next year, we believe there's going to be another 1,250. But then the great thing about our balance sheet, our capital structure, it enables to feed the growth as -- and accelerate the growth. So as we wind down the renovations after -- we'll have about this year and next year, then we can shift to total store growth. And then we've got these formats ahead of us that we feel very confident in growing. So yes, I would see the -- an acceleration in new store growth as we wound up or ramp up our 1,250 renovations for the next 2 years, then we'll shift to new store growth.

Yes. Paul, I think to your point, total number of stores, I know the -- I think the most recent numbers we've given is Dollar Tree, about 10,000 stores and Family Dollar, roughly 15,000 stores. And again, I think we haven't updated those recently to the Street. It's something that we're looking at. I think part of what plays into that and will be something we can maybe update in the future is the idea that as stores continue to evolve, it changes the way we think about what that potential is, right. So as we talk today about the new combo store, we have to relook at the marketplaces. And as we've said, we think that's 3,000 stores at a minimum at this point in time. And so at some point in the future, we would update that. But it's a great opportunity. To Mike's point, the balance sheet helps support us in all things growing. And we're in a great place where obviously there are some retail space being vacated. That second-hand space has always been a big opportunity for us. And so that's another opportunity that allows us to grow at a good clip going forward.

Looks like we have a question on the line from John Heinbockel with Guggenheim Securities.

Mike, why don't we start with sort of strategic impact for the combo, right? So one, do you think it allows you, given the margin mix, to get sharper if you need to on Family Dollar pricing, number one. And then secondly, can you take learnings from the combo and put them into nonrural stores that may not overlap with Dollar Tree? Or are you pretty sensitive to that?

Like I said, we're continuing to learn and refine on all our formats and do whatever it makes sense to get the most productive and improve our margins and profitability of the banners that we have. What I'm really excited about is -- on this format is that these are small towns that we would not go into the town with a Dollar Tree because the economics just don't support that. And we would go in with a Family Dollar and what we said is, well, let's go in with the great part of Dollar Tree and bring in the seasonal and the party and the stationery and the Crafter's Square and all the things that small-town America needs to celebrate their lives. And then on the Family Dollar side, it helps them live their lives and feed their families. So this Combination Store is really hitting on all cylinders from us because of the great mix and the great margin that provides and the overall productivity of the store. And to your earlier comment, we will continue to look at the categories that do well. And don't forget that in our H2s, we already have about 20 categories that have the $1 items that we brought into those categories from the Dollar Tree banner that really helped bring that value program into those stores and are helping drive the H2 format as well. So we will continue to look at that, John.

And then maybe one follow-up to that, right, because I know you sourced that product. What's the thought now, right, on the supply chain? And does this push the idea of hybrid DCs versus the one you now have? Does that accelerate that process?

Well, we will always -- we are absolutely in a parallel path. To your point, we've got a great DC network, and we are evolving that with trying to decide which -- what kind of format in our DC we're -- we have a lot of trucks going by all these towns. So we're going to leverage stem miles and leverage our distribution network to make sure we're driving the most efficiencies as we feed these formats across the country. But you're right, that would lend well to Dollar Tree and Family Dollar product riding on the same truck to drive those efficiencies.

And we'll take another question from Matthew Boss with JPMorgan.

Great. So Mike, at the Dollar Tree banner, fourth quarter, low single-digit comps overall, basically matched the concept's historical run rate, despite I know there was some volatility in there with December and January. So as we think about the first quarter relative to the 2% to 3% comp in the fourth quarter, I guess, overall, any puts and takes to consider? And similarly, for the full year, is any impediments to driving low single-digit comps in your view for the year at Dollar Tree?

Yes. Overall, we don't see any structural or counter impediments. I -- last year, at Dollar Tree, Easter, as you know, did not happen just because it was at the peak of the beginning of COVID. And it did 2 things. It really impacted our first quarter sales at Dollar Tree and our margin at Dollar Tree because we didn't sell the high-margin Easter goods. And then as you look throughout the year, I believe that as the country opens up and people get back to their routines and occasions start to begin to increase inside the churches and schools and families and weddings and all those things that are great for Family Dollar business, I see some upside throughout the year. And then as you just heard, at Christmas, the 10 days or 2 weeks leading to Christmas, because of COVID, completely shut down in traffic. So yes, I believe there's upside this year for Dollar Tree.

That's great. And then just a follow-up on gross margin at the Dollar Tree banner. I guess when we put together the anniversary of the first quarter headwind, I think you were down 250 basis points plus, and then we consider the freight headwind that you walked through, how should we think about Dollar Tree banner gross margin this year versus that 35% to 36% target range?

Yes. I think a lot of puts and takes, as always, Matt. And I think, yes, as we've stated the last couple of quarters that we believe we can return to that 35- to 36-point range. I think the one development that probably hinders that a little bit here as we go into 2021 is change in freight that is really a pretty new item to the -- size of that, I guess, is where I will speak to. So again, I think overall, I think there are things that -- I think our mix continues to be good. I think markdown will continue to be good. I think, obviously, freight will be the big bad guy there. I think shrink could be helpful. And I think after a couple of years of distribution costs rising, I think that maybe that could flatten out just a little bit. So there's many, many puts and takes, but I don't necessarily see it's getting back to that above 35% in 2021 right now with the freight headwind. That doesn't mean we can't get there, but it's a little bit of an uphill climb.

Yes. Matt, this is Mike. What Kevin said is -- what I'm encouraged about is we just finished our January trip, which is our largest trip that we buy for the back half of the year. And our buyers did it remotely, but the value of the product, the excitement of the new product coming in for the back half of the year and the initial markup we're seeing on that product is exactly ahead our expectation. And then as Kevin said, there's going to be some headwinds, but we'll figure out how to manage that. Just like we did with tariffs, as long as they're ahead of us and we know what it is, we will manage around that. And our mix is going to be favorable, too, at Dollar Tree as we -- the Crafter's Square and as we grow the discretionary side of the business this year, as the country begins to open up, that's the side that will benefit the most from this. And that's why I'm really excited about it. As the shrink -- as you know, the last 3 years, shrink has been a headwind at Dollar Tree and Family Dollar. And last year, we improved it, but we see some continued improvement as that -- in that area as well to help offset some other pressures.

That's great color. So interpretation is just under 35% this year, but you have visibility, given the sourcing trips and the IMU, that you're seeing to be back in that 35% to 36%, just given the lead times and as the freight dissipates. Is that kind of the best way to think about it?

I guess the way to think about it, Matt, I think we've tried to describe the puts and takes the best we can at this point in time. It's obviously very fluid, and we'll continue to update you on -- we've tried to be very transparent this morning on all of these items affecting us, and we'll update you as we go forward.

And it looks like we have time for one more question from Michael Lasser with UBS.

So can you frame out the math a little bit that you provided? That was very helpful. So $279 million of COVID costs are going to roll off. You'll have $100 million that are going to be ongoing from the $25 million run rate that you provided for the fourth quarter. So that's a net $179 million benefit at the midpoint of the incremental pressure you're feeling from wages and freight, that $137.5 million. So all else equal, nothing else happens, your sales are flat, you should have $41 million of additional operating income simply from a mix of those 2 factors. And as part of that, can we then just kind of model out how we think sales are going to be and operating income would grow with sales, putting aside that other math?

Well, I mean, obviously, the puts and the takes that you talked to there, Michael, those are the numbers. And again, those are the big ones. There's obviously many things that happen in any given year. We're not giving specific guidance. I think I've helped as much as I can this morning in every way possible. But again, I think you're right. The big items, I think -- we think we can offset. Again, there's plenty of other puts and takes at the end of the day. But we feel relative -- we feel good about our business. We feel good about where we're going to be in 2021 and the opportunities ahead of us. And I don't know that I can give you a whole lot more guidance beyond that.

Okay. I literally just got several messages that, I guess, to make a counterargument to that math, which is all of that's true except for Family Dollar is going to be down potentially in the year ahead and will have to lap some unique benefits. So can you put any frame or reference around how we should think about -- what was unique to Family Dollar in 2019 that's really just not going to repeat? I know that's a big point of uncertainty, but that seems to be where it lies right now. And then I have one last follow-up on Dollar Tree Plus!.

I mean Family Dollar, I mean, you heard us talk this morning about our initiatives. You heard us talk about the opportunities that we have with the H2 and the combo stores. You've heard us talk about how we believe we are truly making a difference in building out our discretionary business and that it's a big -- it's not just big for sales, it's big for margin. It's big for customer satisfaction, return trips and all the things that go with that. So I think those are the things that we're working on hard day in and day out. I don't think anybody can truly project stimulus, how fast the economy will bounce back and all those things that are going to go into it at the end of the day. So we feel good about where we're at. That's where we stand today.

Yes. Mike, well, I just want to reiterate the enthusiasm I have for both banners and where we're at with our formats, with the strategy that our merchants are working on was cycling last year's pandemic. And again, our capital structure, we are in the best position we've been in, in 5 years, and we've got a bright future. And our merchants are going to continue to do the things they do every day and get better, and we're going to keep growing the company.

Yes. And these reasons, very clear from the messaging you're providing. So that's helpful. And then my last follow-up is on the Dollar Tree Plus! concept. You stated that it's exceeding your plan. What's holding you back from rolling this out faster than the 500 locations that you're currently in the process of deploying to? And how does the overall financial performance of the Dollar Tree stores look in terms of sales, operating income dollars and margin?

Yes. And again, we're going to -- that's why we're rolling it out to another 500, it's to continue this test. We had 120 stores, and we bought seasonal items and items for the back half of the year, and we exceeded the sales that we expected. So our customers are responding favorably. And what I've shared in the past is we will continue to look at the overall store sales, the overall margin and the profitability of those stores. And those, we want to see improve. And the tough thing is, with everything going on last year, with everything I just described with COVID, it was really hard to lift our head up and say, did the 10% of the store in the DT Plus! really drive those things that I just described. So we're going to keep testing and refining and rolling this out, but we like the results we're seeing so far.

All right. And that concludes today's question-and-answer session. Mr. Randy Guiler, I'd like to turn the conference back to you for any additional or closing remarks.

Okay. Thank you, Jordan, and thank you for joining us for today's call and for your continued interest in Dollar Tree and Family Dollar. Our next earnings conference call to discuss Q1 results is tentatively scheduled for Thursday, May 27, 2021. Thank you, and have a good day.

And this does conclude today's call. Thank you for your participation. You may now disconnect.