CHESAPEAKE, VA - Dollar Tree, Inc. reported financial results for its first quarter ended May 3, 2025.

“Our strong first quarter performance underscores the progress we’ve made against our strategic priorities and is a clear signal that our customers are responding positively to the changes we are making,” said Mike Creedon, Chief Executive Officer, in the release. “History has shown that we have the resilience to emerge stronger from periods of economic uncertainty, and in today’s rapidly evolving environment, we see a meaningful opportunity to further elevate the value, convenience, and discovery that our customers depend on Dollar Tree to provide.”

Additional Business Highlights

• Opened 148 new Dollar Tree stores
• Converted approximately 500 stores to our 3.0 multi-price format
• Generated $379 million of net cash provided by operating activities from continuing operations and $130 million of free cash flow from continuing operations

First Quarter Results

Results for the first quarter, ended May 3, 2025, are reported on a continuing operations basis and reflect the Family Dollar segment as discontinued operations. Continuing operations reflect the results of the Dollar Tree segment and corporate, support, and other.

Also, unless otherwise noted, all comparisons are to the prior year’s first quarter, ended May 4, 2024, which also have been adjusted to reflect the Family Dollar segment as discontinued operations.

Net sales increased 11.3% to $4.6 billion. Same-store net sales increased 5.4%, driven by a 2.5% increase in traffic and a 2.8% increase in average ticket.

Gross profit increased 11.7% to $1.6 billion and gross margin expanded 20 basis points to 35.6%. The expansion in gross margin was driven primarily by lower freight, improved mark-on, and lower occupancy costs due to sales leverage, partially offset by increased distribution, shrink, and markdown costs.

See the full report here.