Dollar General Corporation stock research
FY2025 Q2
Dollar General (DG) Gross Margin — Quarter Ended Aug 1, 2025
Revenue and gross profit increased sequentially and year-over-year, while cost of revenue also rose but at a slower pace relative to revenue, leading to a higher gross margin compared to both prior periods.
Gross margin takeaway
Quarter ended Aug 1, 2025 · FY2025 Q2
Revenue and gross profit increased sequentially and year-over-year, while cost of revenue also rose but at a slower pace relative to revenue, leading to a higher gross margin compared to both prior periods.
- The gross margin improved as cost of revenue grew less rapidly than revenue, expanding from both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. Versus the same quarter last year, all metrics also increased, with gross margin showing the most notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.3%
Gross profit
$3.4B
Revenue
$10.7B
Cost of revenue
$7.4B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| Nov 1, 2024 | $10.2B | $2.9B | $7.2B | 28.8% |
| Jan 31, 2025 | $10.3B | $3.0B | $7.3B | 29.4% |
| May 2, 2025 | $10.4B | $3.2B | $7.2B | 31.0% |
| Aug 1, 2025 | $10.7B | $3.4B | $7.4B | 31.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 2, 2025
+0.4 pts
Year-over-year change
Aug 2, 2024
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved as cost of revenue grew less rapidly than revenue, expanding from both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. Versus the same quarter last year, all metrics also increased, with gross margin showing the most notable improvement.
Monitor the trend of cost of revenue relative to revenue, as its growth rate directly impacts gross margin.