Dollar Tree, Inc. stock research
FY2023 Q2
Dollar Tree (DLTR) Gross Margin — Quarter Ended Jul 29, 2023
Revenue and cost of revenue both increased from the prior quarter and the same quarter last year, while gross profit moved in a different direction. As a result, gross margin weakened compared to both periods.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q2
Revenue and cost of revenue both increased from the prior quarter and the same quarter last year, while gross profit moved in a different direction. As a result, gross margin weakened compared to both periods.
- Gross profit declined relative to the immediate prior quarter despite higher revenue, indicating that cost of revenue increased at a faster pace. Compared with the year-ago quarter, gross profit rose but not enough to keep gross margin stable.
- Gross margin was lower than both the prior quarter and the same quarter a year earlier. Revenue was higher and cost of revenue was higher than both comparable periods, while gross profit was lower than the prior quarter but higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.8%
Gross profit
$3.0B
Revenue
$10.7B
Cost of revenue
$5.2B
Quarter-over-quarter change
-7.5 pts
Year-over-year change
-3.6 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% |
| Apr 29, 2023 | $3.9B | $1.4B | $5.1B | 35.3% |
| Jul 29, 2023 | $10.7B | $3.0B | $5.2B | 27.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
-7.5 pts
Year-over-year change
Jul 30, 2022
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit declined relative to the immediate prior quarter despite higher revenue, indicating that cost of revenue increased at a faster pace. Compared with the year-ago quarter, gross profit rose but not enough to keep gross margin stable.
Gross margin was lower than both the prior quarter and the same quarter a year earlier. Revenue was higher and cost of revenue was higher than both comparable periods, while gross profit was lower than the prior quarter but higher than the year-ago quarter.
Monitor the relationship between revenue growth and cost of revenue growth, as cost of revenue rose faster than revenue sequentially.