Tractor Supply Company stock research
FY2024 Q3
Tractor Supply (TSCO) Gross Margin — Quarter Ended Sep 28, 2024
Revenue was lower than the prior quarter and higher than the same quarter last year. Gross profit declined sequentially but rose year over year, and cost of revenue decreased more than revenue sequentially, leading to an improved gross margin both sequentially and compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue was lower than the prior quarter and higher than the same quarter last year. Gross profit declined sequentially but rose year over year, and cost of revenue decreased more than revenue sequentially, leading to an improved gross margin both sequentially and compared to the same quarter last year.
- The gross margin improvement was driven by cost of revenue declining faster than revenue sequentially and increasing slower than revenue year over year.
- Sequentially, revenue and gross profit were lower, but gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.2%
Gross profit
$1.3B
Revenue
$3.5B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2024 | $3.5B | $1.3B | $2.2B | 37.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+0.6 pts
Year-over-year change
Sep 30, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by cost of revenue declining faster than revenue sequentially and increasing slower than revenue year over year.
Sequentially, revenue and gross profit were lower, but gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as the company typically builds inventory in the third fiscal quarter to support the cold-weather selling season, which could influence future cost of revenue.