Dollar Tree, Inc. stock research
FY2023 Q1
Dollar Tree (DLTR) Gross Margin — Quarter Ended Apr 29, 2023
Revenue and gross profit increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved from the prior quarter and was higher than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2023 Q1
Revenue and gross profit increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but higher than a year ago. Gross margin improved from the prior quarter and was higher than the same quarter one year earlier.
- The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the same quarter last year, reflecting a favorable relationship between revenue and cost of revenue.
- Compared to the immediately preceding quarter, revenue was higher and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.4B
Revenue
$3.9B
Cost of revenue
$5.1B
Quarter-over-quarter change
+20.7 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 |
|---|---|---|---|---|
| Jan 28, 2023 | -$5.2B | -$760.9M | -$4.4B | 14.6% |
| Apr 29, 2023 | $3.9B | $1.4B | $5.1B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
+20.7 pts
Year-over-year change
Apr 30, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the same quarter last year, reflecting a favorable relationship between revenue and cost of revenue.
Compared to the immediately preceding quarter, revenue was higher and cost of revenue was lower, leading to a higher gross profit and an improved gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin also higher.
Monitor the filing context for any discussion of trends in revenue, cost of sales, and gross margin, as well as any risk factors that could influence future profitability.