10-QPeriod: Q3 FY2026

DOLLAR TREE, INC. Quarterly Report for Q3 Ended Nov 1, 2025

Filed December 3, 2025For Securities:DLTR

Summary

Dollar Tree, Inc. reported solid financial results for the period ending November 1, 2025, demonstrating resilience and strategic execution. The company achieved a notable increase in net sales, driven by a healthy comparable store net sales growth and expansion through new store openings and conversions. This top-line growth, coupled with improvements in gross profit margin, indicates effective cost management and pricing strategies. The company's strategic divestiture of the Family Dollar business has been completed, allowing Dollar Tree to focus its resources and operational efforts as a standalone entity. This transition has streamlined operations and is expected to yield long-term benefits. Despite some headwinds from increased selling, general, and administrative expenses, likely related to investments in store improvements and wage increases, the company's operating income showed growth. Diluted earnings per share also saw a significant increase, reflecting improved profitability and a more focused business model.

Financial Highlights

43 data points
Beta

Revenue

$4.57B

34.4% Gross Margin

Net Income

$188.40M

4.1% Net Margin

EPS (Diluted)

$0.91

Total Assets

$13.38B

Cash & Equivalents

$666.30M

Free Cash Flow

$260.70M

Financial Statements
Beta
Revenue$4.57B
Cost of Revenue$3.00B
Gross Profit$1.57B
SG&A Expenses$1.35B
Operating Income$231.00M
Net Income$188.40M
EPS (Basic)$0.91
EPS (Diluted)$0.91
Shares Outstanding (Basic)207.30M
Shares Outstanding (Diluted)207.80M

Key Highlights

  • 1Net sales increased by 9.4% to $4,746.3 million for the 13 weeks ended November 1, 2025, driven by a 4.2% comparable store net sales increase and new store growth.
  • 2Gross profit margin improved by 40 basis points to 35.8% due to better mark-on from pricing initiatives and lower freight costs.
  • 3Diluted earnings per share from continuing operations rose to $1.20 from $1.08 in the prior year's comparable quarter.
  • 4The sale of the Family Dollar business was completed, with results presented as discontinued operations, allowing for a more focused Dollar Tree banner.
  • 5Significant share repurchases continued, with $1.3 billion spent in the 39 weeks ended November 1, 2025, demonstrating a commitment to returning capital to shareholders.
  • 6Investments in supply chain optimization, including new distribution centers, are underway to enhance efficiency, though they are expected to impact gross margins in the near-to-mid term.

Frequently Asked Questions

The increase in net sales is primarily driven by a combination of comparable store net sales growth (4.2% for the quarter) and sales from new and non-comparable stores, reflecting the company's expansion strategy and successful merchandise offerings.

Dollar Tree is addressing increased Selling, General, and Administrative (SG&A) expenses through strategies such as higher store payroll to support pricing initiatives and wage increases, investments in store improvements, and managing depreciation. The company also aims to achieve operating leverage and profitability through a disciplined approach to SG&A management over the long term.

The Family Dollar business has been classified as discontinued operations. This means its financial results are presented separately from the continuing operations of the Dollar Tree banner, allowing investors to better assess the performance of the core Dollar Tree business.

Key strategic initiatives include expanding the multi-price assortment, enhancing customer experience through partnerships like Uber Eats, optimizing the supply chain with new distribution centers, investing in technology, focusing on store growth and improvements, and disciplined cost management to offset inflation and tariff impacts.