Avery Dennison Corporation stock research
FY2024 Q2
Avery Dennison (AVY) Gross Margin — Quarter Ended Jun 29, 2024
Revenue remained stable compared to the prior quarter, while gross profit increased, leading to a higher gross margin. Year over year, revenue grew and gross profit rose at a faster pace, further improving the gross margin.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q2
Revenue remained stable compared to the prior quarter, while gross profit increased, leading to a higher gross margin. Year over year, revenue grew and gross profit rose at a faster pace, further improving the gross margin.
- The primary observable driver of the gross margin improvement was the increase in gross profit relative to revenue. Sequentially, gross profit rose while revenue was flat; year over year, gross profit growth outpaced revenue growth.
- Compared to the immediately preceding quarter, gross margin improved slightly as gross profit increased while revenue was unchanged. Relative to the same quarter one year earlier, gross margin strengthened more notably, with gross profit increasing at a higher rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.6%
Gross profit
$662.7M
Revenue
$2.2B
Cost of revenue
$1.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $2.2B | $662.7M | $1.6B | 29.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
+0.3 pts
Year-over-year change
Jul 1, 2023
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin improvement was the increase in gross profit relative to revenue. Sequentially, gross profit rose while revenue was flat; year over year, gross profit growth outpaced revenue growth.
Compared to the immediately preceding quarter, gross margin improved slightly as gross profit increased while revenue was unchanged. Relative to the same quarter one year earlier, gross margin strengthened more notably, with gross profit increasing at a higher rate than revenue.
Monitor the trend in cost of revenue, which increased both sequentially and year over year, as it directly affects gross margin.