Dollar General Corporation stock research
FY2024 Q1
Dollar General (DG) Gross Margin — Quarter Ended May 3, 2024
Revenue remained flat sequentially while cost of revenue declined, causing gross profit and gross margin to improve. Compared to the year-ago quarter, revenue grew but cost of revenue increased at a faster rate, leading to a lower gross margin.
Gross margin takeaway
Quarter ended May 3, 2024 · FY2024 Q1
Revenue remained flat sequentially while cost of revenue declined, causing gross profit and gross margin to improve. Compared to the year-ago quarter, revenue grew but cost of revenue increased at a faster rate, leading to a lower gross margin.
- The change in cost of revenue is the most directly observable factor affecting gross margin this quarter, as it moved inversely to revenue when comparing sequential periods and magnified the year-over-year margin decline.
- Sequentially, gross margin improved as cost of revenue declined while revenue was unchanged. Year over year, gross margin weakened because cost of revenue rose more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.2%
Gross profit
$3.0B
Revenue
$9.9B
Cost of revenue
$6.9B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-1.5 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 |
|---|---|---|---|---|
| Aug 4, 2023 | $9.8B | $3.0B | $6.8B | 31.1% |
| Nov 3, 2023 | $9.7B | $2.8B | $6.9B | 29.0% |
| Feb 2, 2024 | $9.9B | $2.9B | $7.0B | 29.5% |
| May 3, 2024 | $9.9B | $3.0B | $6.9B | 30.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 2, 2024
+0.7 pts
Year-over-year change
May 5, 2023
-1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue is the most directly observable factor affecting gross margin this quarter, as it moved inversely to revenue when comparing sequential periods and magnified the year-over-year margin decline.
Sequentially, gross margin improved as cost of revenue declined while revenue was unchanged. Year over year, gross margin weakened because cost of revenue rose more than revenue.
Monitor merchandise inventory levels, as they are directly linked to the cost of revenue and are reported in the balance sheet within the filing.