Avery Dennison Corporation stock research
FY2023 Q4
Avery Dennison (AVY) Gross Margin — Quarter Ended Dec 30, 2023
Revenue in the current quarter was consistent with the preceding quarter, while cost of revenue remained stable, leading to a slightly higher gross profit and a marginally improved gross margin. Compared to the same quarter one year earlier, revenue increased moderately, gross profit grew, and gross margin strengthened as cost of revenue was essentially flat.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
Revenue in the current quarter was consistent with the preceding quarter, while cost of revenue remained stable, leading to a slightly higher gross profit and a marginally improved gross margin. Compared to the same quarter one year earlier, revenue increased moderately, gross profit grew, and gross margin strengthened as cost of revenue was essentially flat.
- The gross margin improved sequentially and year-over-year, driven by a combination of higher gross profit relative to a stable revenue base in the sequential comparison, and a larger gross profit increase relative to revenue growth in the year-over-year comparison.
- Compared to the immediately preceding quarter, gross margin improved slightly; compared to the same quarter one year earlier, gross margin showed a more notable improvement. The relationship between revenue and cost of revenue shifted favorably in both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.2%
Gross profit
$596.0M
Revenue
$2.1B
Cost of revenue
$1.5B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+3.5 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% |
| Dec 30, 2023 | $2.1B | $596.0M | $1.5B | 28.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.3 pts
Year-over-year change
Dec 31, 2022
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a combination of higher gross profit relative to a stable revenue base in the sequential comparison, and a larger gross profit increase relative to revenue growth in the year-over-year comparison.
Compared to the immediately preceding quarter, gross margin improved slightly; compared to the same quarter one year earlier, gross margin showed a more notable improvement. The relationship between revenue and cost of revenue shifted favorably in both periods.
Monitor the trajectory of cost of revenue relative to revenue in future quarters, as its stability in current comparisons supported gross margin improvement.