Avery Dennison Corporation stock research
FY2025 Q2
Avery Dennison (AVY) Gross Margin — Quarter Ended Jun 28, 2025
Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a similar pace, resulting in a gross margin that was slightly lower than the previous quarter and lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 28, 2025 · FY2025 Q2
Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a similar pace, resulting in a gross margin that was slightly lower than the previous quarter and lower than the same quarter one year earlier.
- The change in gross margin was driven by the relationship between revenue and cost of revenue. Although revenue grew, cost of revenue increased proportionally, leading to a modest decline in margin.
- Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was similar, gross profit was lower, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.8%
Gross profit
$639.1M
Revenue
$2.2B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.9 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 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% |
| Jun 28, 2025 | $2.2B | $639.1M | $1.6B | 28.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2025
-0.1 pts
Year-over-year change
Jun 29, 2024
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin was driven by the relationship between revenue and cost of revenue. Although revenue grew, cost of revenue increased proportionally, leading to a modest decline in margin.
Compared to the immediately preceding quarter, revenue was higher and gross profit was higher, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was similar, gross profit was lower, and gross margin was lower.
Monitor the trajectory of gross margin as it has weakened both sequentially and year over year.