Dollar Tree, Inc. stock research
FY2024 Q3
Dollar Tree (DLTR) Gross Margin — Quarter Ended Nov 2, 2024
Revenue and gross profit both increased from the prior quarter, while cost of revenue also increased but at a slower rate, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue declined more sharply, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q3
Revenue and gross profit both increased from the prior quarter, while cost of revenue also increased but at a slower rate, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue declined more sharply, leading to a higher gross margin.
- The gross margin improvement was driven by the relative movement of cost of revenue compared to revenue. Sequentially, cost of revenue increased less than revenue; year-over-year, cost of revenue decreased more than revenue.
- Sequentially, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Year-over-year, revenue and gross profit were lower, while cost of revenue was also lower, and gross margin improved.
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
$4.3B
Cost of revenue
$2.8B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+5.6 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 |
|---|---|---|---|---|
| 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% |
| Nov 2, 2024 | $4.3B | $1.5B | $2.8B | 35.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
+1.1 pts
Year-over-year change
Oct 28, 2023
+5.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by the relative movement of cost of revenue compared to revenue. Sequentially, cost of revenue increased less than revenue; year-over-year, cost of revenue decreased more than revenue.
Sequentially, revenue, gross profit, and cost of revenue all increased, with gross margin improving. Year-over-year, revenue and gross profit were lower, while cost of revenue was also lower, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it has been the key factor in margin changes.