Avery Dennison Corporation stock research
FY2023 Q3
Avery Dennison (AVY) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter but lower than the same quarter a year ago. Gross profit increased sequentially while decreasing year over year, and gross margin improved in both comparisons.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter but lower than the same quarter a year ago. Gross profit increased sequentially while decreasing year over year, and gross margin improved in both comparisons.
- The gross margin improvement was driven by a lower cost of revenue relative to revenue in both the sequential and year-over-year periods.
- Compared to the prior quarter, gross margin rose; compared to the same quarter last year, gross margin also rose.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.9%
Gross profit
$585.8M
Revenue
$2.1B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.2 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% |
| Sep 30, 2023 | $2.1B | $585.8M | $1.5B | 27.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
+1.4 pts
Year-over-year change
Oct 1, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a lower cost of revenue relative to revenue in both the sequential and year-over-year periods.
Compared to the prior quarter, gross margin rose; compared to the same quarter last year, gross margin also rose.
Monitor the trend in cost of revenue as a proportion of revenue.