Tractor Supply Company stock research
FY2023 Q2
Tractor Supply (TSCO) Gross Margin — Quarter Ended Jul 1, 2023
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved, indicating that gross profit grew faster than cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue and gross profit both increased compared with the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved, indicating that gross profit grew faster than cost of revenue relative to revenue.
- Gross margin strengthened from both the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger increase in gross profit relative to revenue versus cost of revenue.
- Current quarter gross margin is higher than both the prior quarter and the year-ago quarter, while revenue and gross profit also reached higher levels. Cost of revenue increased but at a slower pace relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.2%
Gross profit
$1.5B
Revenue
$4.2B
Cost of revenue
$2.7B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.7 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 1, 2023 | $3.3B | $1.2B | $2.1B | 35.5% |
| Jul 1, 2023 | $4.2B | $1.5B | $2.7B | 36.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.7 pts
Year-over-year change
Jun 25, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened from both the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger increase in gross profit relative to revenue versus cost of revenue.
Current quarter gross margin is higher than both the prior quarter and the year-ago quarter, while revenue and gross profit also reached higher levels. Cost of revenue increased but at a slower pace relative to revenue.
Monitor the relationship between gross profit and cost of revenue in future quarters to see if the margin improvement continues.