Dollar Tree, Inc. stock research
FY2024 Q2
Dollar Tree (DLTR) Gross Margin — Quarter Ended Aug 3, 2024
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue remained stable, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, cost of revenue was lower, and the gross margin was higher.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2024 Q2
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue remained stable, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, cost of revenue was lower, and the gross margin was higher.
- The change in gross margin from the prior quarter to the current quarter was driven by a decline in gross profit while cost of revenue remained stable. The improvement in gross margin compared to the same quarter last year was driven by a proportionally larger decline in cost of revenue relative to the decline in revenue.
- Current quarter gross margin weakened from the prior quarter. Current quarter gross margin improved significantly compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.2%
Gross profit
$1.4B
Revenue
$4.1B
Cost of revenue
$2.7B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+6.4 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2024 | $4.1B | $1.4B | $2.7B | 34.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
-1.2 pts
Year-over-year change
Jul 29, 2023
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin from the prior quarter to the current quarter was driven by a decline in gross profit while cost of revenue remained stable. The improvement in gross margin compared to the same quarter last year was driven by a proportionally larger decline in cost of revenue relative to the decline in revenue.
Current quarter gross margin weakened from the prior quarter. Current quarter gross margin improved significantly compared to the same quarter one year earlier.
The trajectory of revenue relative to cost of revenue is a key item to monitor in future filings.