Avery Dennison (AVY) Gross Margin — Quarter Ended Mar 29, 2025

The current quarter's gross margin improved sequentially as cost of revenue declined more than revenue. Compared to the same quarter last year, the gross margin weakened due to lower gross profit on similar revenue.

Gross margin takeaway

Quarter ended Mar 29, 2025 · FY2025 Q1

The sequential improvement in gross margin was driven by a reduction in cost of revenue relative to the decline in revenue.
Compared to the prior quarter, gross margin improved; compared to the same quarter a year ago, gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

28.9%

Gross profit

$621.5M

Revenue

$2.1B

Cost of revenue

$1.5B

Quarter-over-quarter change

+1.1 pts

Year-over-year change

-0.5 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
Jun 29, 2024	$2.2B	$662.7M	$1.6B	29.6%
Sep 28, 2024	$2.2B	$626.6M	$1.6B	28.7%
Dec 28, 2024	$2.2B	$609.2M	$1.6B	27.9%
Mar 29, 2025	$2.1B	$621.5M	$1.5B	28.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 28, 2024

+1.1 pts

Year-over-year change

Mar 30, 2024

-0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was driven by a reduction in cost of revenue relative to the decline in revenue.

Compared to the prior quarter, gross margin improved; compared to the same quarter a year ago, gross margin weakened.

Monitor the sustainability of cost reduction measures.