Dollar Tree has delivered one of its strongest quarters in years, with sales growing 9.4% to nearly $5 billion and same-store sales up over 4%. The company’s success is driven by a 4.5% increase in average ticket size, reflecting momentum in discretionary categories and a focus on treasure-hunting appeal.

Halloween 2025 was a record-breaking holiday for Dollar Tree, with discretionary comps rising almost 5% and a shift towards higher-margin items priced at $3, $4, and $5. This strategy has boosted overall sales mix and differentiated Dollar Tree as a unique destination for bargain-hunting consumers.

Margins for Dollar Tree have improved, with gross margin expanding by 40 basis points to nearly 36%. The company’s performance is in stark contrast to previous years of stagnating sales and margins, showcasing a turnaround in profitability and growth amidst a challenging consumer backdrop.

Dollar Tree’s success comes at a time when other retailers like Walmart are seeing strong performance driven by recessionary signals and trading down behavior. Target, in particular, is feeling the pain of squeezed middle-income consumers. Dollar Tree, on the other hand, is benefiting from both trading down and offering affordable treats in a tough economic environment.

As 2025 comes to a close, Dollar Tree emerges as a standout in the retail sector, serving consumers in distress with affordable options and a treasure-hunt shopping experience that sets it apart from competitors.

Read more at Yahoo Finance: Dollar Tree’s Q3 blows doors, showing stressed consumers