Dollar Tree, Inc. stock research
FY2022 Q4
Dollar Tree (DLTR) Gross Margin — Quarter Ended Jan 28, 2023
For the current quarter, revenue, cost of revenue, and gross profit are all reported as negative amounts, yielding a positive gross margin that is lower than the prior quarter and the same quarter last year. The relationships among these metrics indicate a significant shift in the underlying financial structure.
Gross margin takeaway
Quarter ended Jan 28, 2023 · FY2022 Q4
For the current quarter, revenue, cost of revenue, and gross profit are all reported as negative amounts, yielding a positive gross margin that is lower than the prior quarter and the same quarter last year. The relationships among these metrics indicate a significant shift in the underlying financial structure.
- The primary observable driver of gross margin is the relationship between the negative revenue and negative cost of revenue, which together produce a positive margin. The magnitude of the negative revenue relative to the negative cost of revenue determines the margin percentage.
- Compared to the immediately preceding quarter and the same quarter one year ago, revenue, gross profit, and cost of revenue have all moved from positive to negative, and gross margin has weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.6%
Gross profit
-$760.9M
Revenue
-$5.2B
Cost of revenue
-$4.4B
Quarter-over-quarter change
n/a
Year-over-year change
-15.6 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 |
|---|---|---|---|---|
| Jan 28, 2023 | -$5.2B | -$760.9M | -$4.4B | 14.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 29, 2022
-15.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin is the relationship between the negative revenue and negative cost of revenue, which together produce a positive margin. The magnitude of the negative revenue relative to the negative cost of revenue determines the margin percentage.
Compared to the immediately preceding quarter and the same quarter one year ago, revenue, gross profit, and cost of revenue have all moved from positive to negative, and gross margin has weakened.
Monitor the basis for the negative revenue and cost of revenue figures, as they represent a departure from prior positive trends.