Question · Q2 2026
Kelly Banya asked about the key factors driving Dollar Tree's updated gross margin outlook of 50 basis points expansion, including the impact of pricing actions, freight, and other contributing factors.
Answer
CFO Stuart Glendinning explained that the gross margin outlook involves many moving parts, including freight benefits, inventory revaluation, and mark-ons, which are partially offset by higher markdowns. He emphasized the company's focus on maintaining a strong gross margin through its 'five levers' strategy.