Dollar General Corporation stock research
FY2023 Q1
Dollar General (DG) Gross Margin — Quarter Ended May 5, 2023
Revenue declined from the previous quarter while gross profit decreased at a slower pace, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and the gross margin also strengthened.
Gross margin takeaway
Quarter ended May 5, 2023 · FY2023 Q1
Revenue declined from the previous quarter while gross profit decreased at a slower pace, resulting in an improved gross margin. Compared to the same quarter last year, both revenue and gross profit were higher, and the gross margin also strengthened.
- The gross margin improvement was driven by a favorable shift in the relationship between cost of revenue and revenue, as cost of revenue fell proportionally more than revenue when compared sequentially.
- Sequentially, revenue was lower, gross profit was lower, and cost of revenue was lower, but gross margin was higher. Year-over-year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.6%
Gross profit
$3.0B
Revenue
$9.3B
Cost of revenue
$6.4B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 3, 2023 | $10.2B | $3.1B | $7.1B | 30.9% |
| May 5, 2023 | $9.3B | $3.0B | $6.4B | 31.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2023
+0.8 pts
Year-over-year change
Apr 29, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a favorable shift in the relationship between cost of revenue and revenue, as cost of revenue fell proportionally more than revenue when compared sequentially.
Sequentially, revenue was lower, gross profit was lower, and cost of revenue was lower, but gross margin was higher. Year-over-year, revenue was higher, gross profit was higher, cost of revenue was higher, and gross margin was slightly higher.
Monitor the ratio of cost of revenue to revenue, as changes in this relationship directly affect gross margin.