Avery Dennison Corporation stock research
FY2024 Q3
Avery Dennison (AVY) Gross Margin — Quarter Ended Sep 28, 2024
Revenue and cost of revenue were stable compared to the previous quarter, but gross profit declined, resulting in a lower gross margin. Year over year, revenue and gross profit both increased, with gross margin improving as gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue and cost of revenue were stable compared to the previous quarter, but gross profit declined, resulting in a lower gross margin. Year over year, revenue and gross profit both increased, with gross margin improving as gross profit grew faster than cost of revenue.
- The most observable driver is the change in gross profit relative to revenue. Sequentially, gross profit fell while revenue was flat, pointing to a higher share of cost of revenue. Year over year, gross profit rose faster than revenue, supporting the margin improvement.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit declined on stable revenue. Versus the same quarter one year earlier, gross margin improved as both revenue and gross profit rose, with gross profit increasing at a greater pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.7%
Gross profit
$626.6M
Revenue
$2.2B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+0.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2024 | $2.2B | $626.6M | $1.6B | 28.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the change in gross profit relative to revenue. Sequentially, gross profit fell while revenue was flat, pointing to a higher share of cost of revenue. Year over year, gross profit rose faster than revenue, supporting the margin improvement.
Compared to the immediately preceding quarter, gross margin weakened as gross profit declined on stable revenue. Versus the same quarter one year earlier, gross margin improved as both revenue and gross profit rose, with gross profit increasing at a greater pace.
Monitor the trend in gross profit relative to revenue to assess whether the sequential margin weakness persists or reverses.