Avery Dennison Corporation stock research
FY2024 Q1
Avery Dennison (AVY) Gross Margin — Quarter Ended Mar 30, 2024
Revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. The gross margin reflects the relationship between gross profit and revenue, with cost of revenue unchanged.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q1
Revenue increased while cost of revenue remained stable, resulting in higher gross profit and an improved gross margin. The gross margin reflects the relationship between gross profit and revenue, with cost of revenue unchanged.
- The strongest observable driver was revenue growth with cost of revenue unchanged, which directly lifted gross profit and margin.
- Compared with the immediately preceding quarter, gross margin was higher; compared with the same quarter one year earlier, gross margin was also higher. Revenue was higher in both comparisons, while cost of revenue was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.4%
Gross profit
$632.2M
Revenue
$2.2B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+3.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2024 | $2.2B | $632.2M | $1.5B | 29.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+1.1 pts
Year-over-year change
Apr 1, 2023
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was revenue growth with cost of revenue unchanged, which directly lifted gross profit and margin.
Compared with the immediately preceding quarter, gross margin was higher; compared with the same quarter one year earlier, gross margin was also higher. Revenue was higher in both comparisons, while cost of revenue was stable.
Monitor the trend in cost of revenue relative to revenue, as its stability was a key factor in the margin improvement.