Dollar Tree, Inc. stock research
FY2024 Q1
Dollar Tree (DLTR) Gross Margin — Quarter Ended May 4, 2024
Revenue, cost of revenue, and gross profit together determine gross margin. In the current quarter, gross margin declined from the prior quarter but remained close to the level of the same quarter a year ago.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2024 Q1
Revenue, cost of revenue, and gross profit together determine gross margin. In the current quarter, gross margin declined from the prior quarter but remained close to the level of the same quarter a year ago.
- The most observable factor is the change in cost of revenue relative to revenue, which led to a lower gross margin than the prior quarter.
- Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.4%
Gross profit
$1.5B
Revenue
$4.2B
Cost of revenue
$2.7B
Quarter-over-quarter change
+5.7 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 |
|---|---|---|---|---|
| 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% |
| May 4, 2024 | $4.2B | $1.5B | $2.7B | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
+5.7 pts
Year-over-year change
Apr 29, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable factor is the change in cost of revenue relative to revenue, which led to a lower gross margin than the prior quarter.
Compared to the immediately preceding quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was slightly higher.
Monitor inventory levels, as the company noted they affected operating cash flow in the current period compared to the prior year.