Avery Dennison Corporation stock research
FY2023 Q2
Avery Dennison (AVY) Gross Margin — Quarter Ended Jul 1, 2023
Revenue was essentially unchanged from the prior quarter, while gross profit improved, leading to a slightly higher gross margin. Compared to the same quarter one year earlier, revenue was lower, and gross profit decreased more sharply, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue was essentially unchanged from the prior quarter, while gross profit improved, leading to a slightly higher gross margin. Compared to the same quarter one year earlier, revenue was lower, and gross profit decreased more sharply, resulting in a weakened gross margin.
- The strongest observable margin driver was the sequential increase in gross profit relative to revenue, which lifted the gross margin.
- Gross margin improved modestly from the immediately preceding quarter but weakened versus the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.5%
Gross profit
$553.4M
Revenue
$2.1B
Cost of revenue
$1.5B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-0.9 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 | $2.1B | $542.3M | $1.5B | 26.3% |
| Jul 1, 2023 | $2.1B | $553.4M | $1.5B | 26.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.2 pts
Year-over-year change
Jul 2, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the sequential increase in gross profit relative to revenue, which lifted the gross margin.
Gross margin improved modestly from the immediately preceding quarter but weakened versus the same quarter one year earlier.
Monitor the relationship between cost of revenue and revenue in future periods.