DLTRNEUTRAL

Gross Margin

36.9%

Updated 536h ago

Sector Performance

35th percentile

DLTR

36.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods; DLTR's current 36.9% means for every dollar of sales, about 37 cents is left to cover overhead and profit.

This is below the sector median of 43.2%, placing DLTR in the 37th percentile among its peers — meaning nearly two-thirds of competitors have higher gross margins. No year-over-year change, quarter-over-quarter change, or historical trend data is available, so no directional pattern can be assessed. The combination of a below-median gross margin with no trend information leaves an unclear picture, but the low level relative to peers signals potential pricing power or cost structure challenges that could add risk. This metric does not strongly contradict the NEUTRAL verdict: while the margin is subpar, it is not critically low, and the lack of trend data prevents drawing a firm bullish or bearish conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about DLTR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are DLTR's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.