Dollar Tree, Inc. stock research
FY2025 Q2
Dollar Tree (DLTR) Gross Margin — Quarter Ended Aug 2, 2025
Revenue and gross profit were unchanged from the prior quarter, while cost of revenue remained at a similar level. However, gross margin weakened compared to the prior quarter, though it improved relative to the same quarter last year.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q2
Revenue and gross profit were unchanged from the prior quarter, while cost of revenue remained at a similar level. However, gross margin weakened compared to the prior quarter, though it improved relative to the same quarter last year.
- The slight shift in the relationship between revenue and cost of revenue resulted in a lower gross margin. The filing discusses seasonal working capital patterns and capital investments, which may influence cost dynamics.
- Compared to the immediate prior quarter, gross margin declined as cost of revenue increased relative to revenue. Versus the same quarter a year ago, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.4%
Gross profit
$1.6B
Revenue
$4.6B
Cost of revenue
$3.0B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2025 | $4.6B | $1.6B | $3.0B | 34.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
-1.2 pts
Year-over-year change
Aug 3, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The slight shift in the relationship between revenue and cost of revenue resulted in a lower gross margin. The filing discusses seasonal working capital patterns and capital investments, which may influence cost dynamics.
Compared to the immediate prior quarter, gross margin declined as cost of revenue increased relative to revenue. Versus the same quarter a year ago, gross margin improved as revenue grew faster than cost of revenue.
Monitor the trajectory of cost of revenue, especially given the seasonal working capital peak noted in the filing.