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Dollar Tree Gross Margin %

: 33.94% (As of Apr. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Dollar Tree's Gross Profit for the three months ended in Apr. 2022 was $2,343 Mil. Dollar Tree's Revenue for the three months ended in Apr. 2022 was $6,903 Mil. Therefore, Dollar Tree's Gross Margin % for the quarter that ended in Apr. 2022 was 33.94%.


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: 30.7   Max: 35.87
Current: 30.34


During the past 13 years, the highest Gross Margin % of Dollar Tree was 35.87%. The lowest was 29.40%. And the median was 30.70%.

DLTR's Gross Margin % is ranked better than
74.24% of 295 companies
in the Retail - Defensive industry
Industry Median: 23.87 vs DLTR: 30.34

Dollar Tree had a gross margin of 33.94% for the quarter that ended in Apr. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dollar Tree was -1.00% per year.


Dollar Tree Gross Margin % Historical Data

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.

* Premium members only.

Dollar Tree Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.57 30.44 29.82 30.53 29.40

Dollar Tree Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.36 29.39 27.52 30.23 33.94

Competitive Comparison

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 % Distribution

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.



Dollar Tree Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Dollar Tree's Gross Margin for the fiscal year that ended in Jan. 2022 is calculated as

Gross Margin % (A: Jan. 2022 )=Gross Profit (A: Jan. 2022 ) / Revenue (A: Jan. 2022 )
=7737.3 / 26321.2
=(Revenue - Cost of Goods Sold) / Revenue
=(26321.2 - 18583.9) / 26321.2
=29.40 %

Dollar Tree's Gross Margin for the quarter that ended in Apr. 2022 is calculated as


Gross Margin % (Q: Apr. 2022 )=Gross Profit (Q: Apr. 2022 ) / Revenue (Q: Apr. 2022 )
=2343 / 6902.6
=(Revenue - Cost of Goods Sold) / Revenue
=(6902.6 - 4559.6) / 6902.6
=33.94 %

* 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  (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 33.94% for the quarter that ended in Apr. 2022 => 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

Thank you for viewing the detailed overview of Dollar Tree's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollar Tree Business Description

Dollar Tree logo
Address
500 Volvo Parkway, Chesapeake, VA, USA, 23320
Dollar Tree operates discount stores in the U.S. and Canada, including over 7,800 shops under both its namesake and Family Dollar units (nearly 15,700 in total). The eponymous chain features branded and private-label goods, generally at a $1.25 price. Nearly 50% of Dollar Tree stores' fiscal 2020 sales came from consumables (including food, health and beauty, and household paper and cleaning products), just over 45% from variety items (including toys and housewares), and 5% from seasonal goods. Family Dollar features branded and private-label goods at prices generally ranging from $1 to $10, with over 76% of fiscal 2020 sales from consumables, 9% from seasonal/electronic items (including prepaid phones and toys), 9% from home products, and 6% from apparel and accessories.
Executives
Flanigan John W officer: Chief Supply Chain Officer 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Gatta Lawrence J. Jr. officer: Chief Merchandising Officer FD C/O LONGS DRUG STORES CORPORATION 141 NORTH CIVIC DRIVE WALNUT CREEK CA 94596
Mantle Ridge Lp other: Director by deputization 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Kelly Edward J Iii director CIT GROUP INC ONE CIT DRIVE LIVINGSTON NJ 07039
Hilal Paul C director MANTLE RIDGE, L.P. 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Mr Cobalt Advisor Llc other: Director by deputization 712 FIFTH AVENUE, 17TH FLOOR NEW YORK NY 10019
Scott Bertram L director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Laschinger Mary A director 400 ATLANTIC STREET STAMFORD CT 06921
Grise Cheryl W director NORTHEAST UTILITIES 107 SELDEN STREET BERLIN CT 06037
Dreiling Richard W director, other: Executive Chairman C/O SAFEWAY INC 5918 STONERIDGE MALL ROAD PLEASANTON CA 94588
Hulett Jennifer officer: Chief Human Resources Officer 1500 SOLANA BLVD. SUITE 3400 WESTLAKE TX 76262
Alasdair James officer: EVP Merch and Supply Chain 100 PIER 1 PLACE FORT WORTH TX 76102
Park Winifred director 1 EXPRESS DRIVE COLUMBUS OH 43230
Lech Michael officer: Chief Logistics Officer 500 VOLVO PARKWAY CHESAPEAKE VA 23320

Dollar Tree Headlines

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