Dollar Tree, Inc. stock research
FY2025 Q3
Dollar Tree (DLTR) Gross Margin — Quarter Ended Nov 1, 2025
Revenue increased compared with both the prior quarter and the same quarter last year, while cost of revenue rose in absolute terms. Gross profit improved over both periods, and gross margin strengthened relative to the prior quarter but edged lower against the year-ago quarter.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q3
Revenue increased compared with both the prior quarter and the same quarter last year, while cost of revenue rose in absolute terms. Gross profit improved over both periods, and gross margin strengthened relative to the prior quarter but edged lower against the year-ago quarter.
- Gross margin strengthened sequentially, supported by revenue growth that outpaced the increase in cost of revenue. Compared with the prior quarter, cost of revenue held roughly flat while revenue expanded, which was the primary observable factor driving margin improvement.
- Current-quarter gross margin of 35.8% is higher than the prior quarter's 34.4% but slightly lower than the year-ago quarter's 35.4%. Revenue is higher than both the prior quarter and the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.8%
Gross profit
$1.7B
Revenue
$4.7B
Cost of revenue
$3.0B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Nov 1, 2025 | $4.7B | $1.7B | $3.0B | 35.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
+1.4 pts
Year-over-year change
Nov 2, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially, supported by revenue growth that outpaced the increase in cost of revenue. Compared with the prior quarter, cost of revenue held roughly flat while revenue expanded, which was the primary observable factor driving margin improvement.
Current-quarter gross margin of 35.8% is higher than the prior quarter's 34.4% but slightly lower than the year-ago quarter's 35.4%. Revenue is higher than both the prior quarter and the year-ago quarter.
Monitor the trend in cost of revenue relative to revenue, as sequential gross margin improvement depends on cost growth remaining contained.