Dollar Tree, Inc. stock research
FY2025 Q1
Dollar Tree (DLTR) Gross Margin — Quarter Ended May 3, 2025
Revenue increased compared to both the previous quarter and the same quarter last year, while gross profit was lower than the previous quarter but higher than a year ago. The gross margin weakened from the prior quarter but was slightly higher than the same quarter last year.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q1
Revenue increased compared to both the previous quarter and the same quarter last year, while gross profit was lower than the previous quarter but higher than a year ago. The gross margin weakened from the prior quarter but was slightly higher than the same quarter last year.
- Cost of revenue decreased from the previous quarter but increased year over year, while revenue grew at a slower pace compared to the previous quarter decline. This resulted in a gross margin that was stronger than last year but weaker than the immediate prior quarter.
- Compared to the previous quarter, revenue was lower and gross profit was lower, leading to a weakened gross margin. Relative to the same quarter last year, revenue was higher and gross profit was higher, yielding an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.6%
Gross profit
$1.6B
Revenue
$4.6B
Cost of revenue
$3.0B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| May 4, 2024 | $4.2B | $1.5B | $2.7B | 35.4% |
| Aug 3, 2024 | $4.1B | $1.4B | $2.7B | 34.2% |
| Nov 2, 2024 | $4.3B | $1.5B | $2.8B | 35.4% |
| May 3, 2025 | $4.6B | $1.6B | $3.0B | 35.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2024
+0.2 pts
Year-over-year change
May 4, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue decreased from the previous quarter but increased year over year, while revenue grew at a slower pace compared to the previous quarter decline. This resulted in a gross margin that was stronger than last year but weaker than the immediate prior quarter.
Compared to the previous quarter, revenue was lower and gross profit was lower, leading to a weakened gross margin. Relative to the same quarter last year, revenue was higher and gross profit was higher, yielding an improved gross margin.
Monitor the relationship between cost of revenue and revenue in upcoming quarters, as the sequential decline in gross margin could indicate pressure on cost efficiency.