Dollar Tree, Inc. stock research
FY2023 Q3
Dollar Tree (DLTR) Gross Margin — Quarter Ended Oct 28, 2023
Gross profit is the difference between revenue and cost of revenue. Gross margin improved compared with the prior quarter, but weakened slightly compared with the same quarter one year earlier.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2023 Q3
Gross profit is the difference between revenue and cost of revenue. Gross margin improved compared with the prior quarter, but weakened slightly compared with the same quarter one year earlier.
- The most notable change was the improvement in gross margin from the prior quarter, which occurred even as revenue declined. This shift in the relationship between revenue and cost of revenue is the strongest observable driver.
- Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.7%
Gross profit
$2.2B
Revenue
$7.3B
Cost of revenue
$5.1B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-0.1 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% |
| Oct 28, 2023 | $7.3B | $2.2B | $5.1B | 29.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
+1.9 pts
Year-over-year change
Oct 29, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change was the improvement in gross margin from the prior quarter, which occurred even as revenue declined. This shift in the relationship between revenue and cost of revenue is the strongest observable driver.
Gross margin was higher than the immediately preceding quarter but lower than the same quarter one year earlier.
Monitor the trend of cost of revenue relative to revenue in upcoming periods.