TS

Tractor Supply Company stock research

Mar 30, 2024

FY2024 Q1

Tractor Supply (TSCO) Gross Margin — Quarter Ended Mar 30, 2024

Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the year-ago quarter, reflecting a stronger relationship between gross profit and revenue.

Gross margin takeaway

Quarter ended Mar 30, 2024 · FY2024 Q1

Revenue and gross profit both increased compared to the same quarter last year, while cost of revenue also rose. Gross margin improved relative to both the prior quarter and the year-ago quarter, reflecting a stronger relationship between gross profit and revenue.

  • Gross margin improved sequentially and year-over-year, driven by gross profit growing faster than revenue relative to cost of revenue.
  • Compared to the prior quarter, revenue was lower but gross margin was higher, indicating a more favorable cost structure relative to sales. Versus the same quarter last year, both revenue and gross margin were higher, with gross profit increasing more than cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

36.0%

Gross profit

$1.2B

Revenue

$3.4B

Cost of revenue

$2.2B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jul 1, 2023$4.2B$1.5B$2.7B36.2%
Sep 30, 2023$3.4B$1.3B$2.2B36.6%
Dec 30, 2023$3.7B$1.3B$2.4B35.3%
Mar 30, 2024$3.4B$1.2B$2.2B36.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 30, 2023

+0.6 pts

Year-over-year change

Apr 1, 2023

+0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin improved sequentially and year-over-year, driven by gross profit growing faster than revenue relative to cost of revenue.

Compared to the prior quarter, revenue was lower but gross margin was higher, indicating a more favorable cost structure relative to sales. Versus the same quarter last year, both revenue and gross margin were higher, with gross profit increasing more than cost of revenue.

Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences gross margin sustainability.