Dollar TreeDLTR +4.79%76 Gross Margin % is 36.87% as of Apr. 2026, which is 18% above its 10-year median of 31.22. GuruFocus rates DLTR with a GF Score™ of 76/100 and a GF Value™ of $145.99 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 305 Retail - Defensive companies, Dollar Tree ranks better than 81.31% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Dollar Tree's Gross Profit for the
three
months ended in Apr. 2026 was $1,835 Mil. Dollar Tree's Revenue for the
three
months ended in Apr. 2026 was $4,976 Mil. Therefore, Dollar Tree's Gross Margin % for the quarter that ended in Apr. 2026 was 36.87%.
The historical rank and industry rank for Dollar Tree's Gross Margin % or its related term are showing as below:
DLTR'
s Gross Margin % Range Over the Past 10 Years
Min: 29.4 Med: 31.22 Max: 37.51
Current: 36.71
During the past 13 years, the highestGross Margin % of Dollar Tree was 37.51%. The lowest was 29.40%. And the median was 31.22%.
DLTR's Gross Margin % is ranked better than 81.31% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs DLTR: 36.71
Dollar Tree had a gross margin of 36.87% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Dollar Tree was 4.20% per year.
Dollar Tree (NAS:DLTR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dollar Tree had a gross margin of 36.87% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dollar Tree Gross Margin % Related Terms
Dollar Tree Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dollar Tree's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Discount Stores subindustry, Dollar Tree's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dollar Tree Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dollar Tree (DLTR) has a Gross Margin % of 36.87% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dollar Tree and its competitors. This is 18% above median its historical median of 31.22. Over the past decade, Dollar Tree's Gross Margin % has ranged from 29.40 to 37.51. According to the industry distribution chart, Dollar Tree ranks #57 out of 305 companies in the Retail - Defensive industry, placing it in the top 18.7%.
Is Dollar Tree's Gross Margin % too high?
Dollar Tree's current Gross Margin % of 36.87% is 18% above median its 10-year median of 31.22. Over the past 10 years, this metric has ranged from a low of 29.40 to a high of 37.51. The Retail - Defensive industry median Gross Margin % is 24.14. Dollar Tree's value of 36.87% is 52.7% above this industry median. Based on the distribution chart, Dollar Tree ranks #57 out of 305 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Dollar Tree has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dollar Tree's Gross Margin % compare to DG and BJ?
According to the Retail - Defensive industry distribution chart, Dollar Tree ranks #57 out of 305 companies for Gross Margin %. This places Dollar Tree in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.14. Dollar Tree's value of 36.87% is 52.7% above this benchmark. Historically, Dollar Tree's own Gross Margin % has ranged from 29.40 to 37.51 over the past decade. While the company's 10-year median is 31.22 vs. the industry median of 24.14, Dollar Tree has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dollar Tree's current Gross Margin % of 36.87% is 52.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dollar Tree and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dollar Tree's current Gross Margin % is 36.87%, which is 18% above median its own 10-year median of 31.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dollar Tree stock overvalued right now?
Based on GuruFocus' analysis, Dollar Tree (DLTR) is currently considered Modestly Undervalued. The stock's GF Value™ is $145.99, compared to a current price of $123.87 — trading 15.2% below its estimated fair value. The current Gross Margin % is 36.87%, which is 18% above median its 10-year median of 31.22 and 52.7% above the Retail - Defensive industry median of 24.14. Dollar Tree's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dollar Tree (DLTR), the current Gross Margin % is 36.87% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dollar Tree (DLTR) Overvalued in 2026?
Based on GuruFocus' analysis, Dollar Tree stock appears to be undervalued.
The current stock price of $123.87 is trading 15.2% below its estimated GF Value™ of $145.99.
GuruFocus considers Dollar Tree to be Modestly Undervalued.
Key valuation signals for DLTR:
Gross Margin %: 36.87% (18% above median its 10-year median of 31.22)
GF Value™: $145.99 vs. price of $123.87 (15.2% below fair value)
Industry Position: 52.7% above the Retail - Defensive median (#57 of 305)
No single metric tells the full story. See the DLTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1986, Dollar Tree operates almost 9,000 small-box discount stores across the United States and Canada, offering roughly 85% of its merchandise under $2. The chain targets value-conscious suburban and urban shoppers with a mix of consumables (49% of sales), variety (45%), and seasonal goods (6%). In fiscal 2025, Dollar Tree generated over $19 billion in sales, through its multi-price strategy, higher-margin discretionary assortments, and private-label products that account for nearly one-third of sales.
76GF Score
Get the complete analysis for DLTR
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