Deckers Outdoor Corporation stock research
FY2024 Q1
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Jun 30, 2023
Gross profit increased at a faster pace than revenue, while cost of revenue grew at a slower pace, resulting in an improved gross margin. Compared to the immediately preceding quarter, revenue was lower but gross margin expanded; versus the same quarter one year earlier, both revenue and gross margin were higher.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Gross profit increased at a faster pace than revenue, while cost of revenue grew at a slower pace, resulting in an improved gross margin. Compared to the immediately preceding quarter, revenue was lower but gross margin expanded; versus the same quarter one year earlier, both revenue and gross margin were higher.
- The most observable margin driver is the favorable relationship between cost of revenue and gross profit. Cost of revenue rose less than gross profit on a relative basis, directly supporting the gross margin improvement.
- Revenue decreased sequentially but increased year-over-year; gross profit followed a similar pattern. Gross margin improved both sequentially and year-over-year, indicating a stronger conversion of revenue into gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.3%
Gross profit
$346.4M
Revenue
$675.8M
Cost of revenue
$329.4M
Quarter-over-quarter change
n/a
Year-over-year change
+3.3 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 30, 2023 | $675.8M | $346.4M | $329.4M | 51.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jun 30, 2022
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the favorable relationship between cost of revenue and gross profit. Cost of revenue rose less than gross profit on a relative basis, directly supporting the gross margin improvement.
Revenue decreased sequentially but increased year-over-year; gross profit followed a similar pattern. Gross margin improved both sequentially and year-over-year, indicating a stronger conversion of revenue into gross profit.
Monitor whether the positive cost-of-revenue trend relative to revenue persists, as it has been a key factor in the recent margin expansion.