Tractor Supply Company stock research
FY2024 Q2
Tractor Supply (TSCO) Gross Margin — Quarter Ended Jun 29, 2024
Revenue increased from the prior quarter but was unchanged from a year ago. Gross profit and gross margin improved both sequentially and year-over-year, as cost of revenue grew at a slower pace or remained stable.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q2
Revenue increased from the prior quarter but was unchanged from a year ago. Gross profit and gross margin improved both sequentially and year-over-year, as cost of revenue grew at a slower pace or remained stable.
- The primary driver of the gross margin improvement was the increase in gross profit relative to cost of revenue, particularly on a sequential basis.
- Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose more, resulting in a higher gross margin. Year-over-year, revenue and cost of revenue were stable, while gross profit was higher, leading to an improved margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.6%
Gross profit
$1.6B
Revenue
$4.2B
Cost of revenue
$2.7B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.4B | $1.3B | $2.2B | 36.6% |
| Dec 30, 2023 | $3.7B | $1.3B | $2.4B | 35.3% |
| Mar 30, 2024 | $3.4B | $1.2B | $2.2B | 36.0% |
| Jun 29, 2024 | $4.2B | $1.6B | $2.7B | 36.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
+0.7 pts
Year-over-year change
Jul 1, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was the increase in gross profit relative to cost of revenue, particularly on a sequential basis.
Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose more, resulting in a higher gross margin. Year-over-year, revenue and cost of revenue were stable, while gross profit was higher, leading to an improved margin.
Monitor inventory levels and cost of revenue trends, as the filing notes that inventory builds typically occur ahead of seasonal selling periods.