Tractor Supply Company stock research
FY2023 Q4
Tractor Supply (TSCO) Gross Margin — Quarter Ended Dec 30, 2023
The company, which describes itself as the largest rural lifestyle retailer in the United States, reported a gross margin that improved from the same quarter last year but weakened from the prior quarter. Revenue and gross profit were lower than the year-ago quarter, while cost of revenue was also lower; sequentially, revenue was higher, cost of revenue was higher, and gross profit was stable.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
The company, which describes itself as the largest rural lifestyle retailer in the United States, reported a gross margin that improved from the same quarter last year but weakened from the prior quarter. Revenue and gross profit were lower than the year-ago quarter, while cost of revenue was also lower; sequentially, revenue was higher, cost of revenue was higher, and gross profit was stable.
- The strongest observable margin driver was the relative decline in cost of revenue compared to revenue from the year-ago period, as cost decreased more than revenue, expanding the margin.
- Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue was also lower, resulting in a higher gross margin. Compared to the prior quarter, revenue was higher, cost of revenue was higher, and gross profit was stable, leading to a lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.3B
Revenue
$3.7B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+1.3 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% |
| Sep 30, 2023 | $3.4B | $1.3B | $2.2B | 36.6% |
| Dec 30, 2023 | $3.7B | $1.3B | $2.4B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.3 pts
Year-over-year change
Dec 31, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relative decline in cost of revenue compared to revenue from the year-ago period, as cost decreased more than revenue, expanding the margin.
Compared to the same quarter last year, revenue and gross profit were lower, but cost of revenue was also lower, resulting in a higher gross margin. Compared to the prior quarter, revenue was higher, cost of revenue was higher, and gross profit was stable, leading to a lower gross margin.
Monitor the sequential rise in cost of revenue relative to revenue, which compressed the gross margin from the prior quarter.