Deckers Outdoor Corporation stock research
FY2024 Q3
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Dec 31, 2023
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. The cost of revenue grew at a slower pace than revenue, resulting in an expanded gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q3
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. The cost of revenue grew at a slower pace than revenue, resulting in an expanded gross margin.
- The strongest observable driver of the margin improvement is the larger increase in revenue relative to the increase in cost of revenue, which reduced the cost of revenue as a share of revenue.
- Compared to the immediately preceding quarter, gross margin improved, and compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.7%
Gross profit
$916.6M
Revenue
$1.6B
Cost of revenue
$643.7M
Quarter-over-quarter change
+5.3 pts
Year-over-year change
+5.8 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $675.8M | $346.4M | $329.4M | 51.3% |
| Sep 30, 2023 | $1.1B | $583.0M | $508.9M | 53.4% |
| Dec 31, 2023 | $1.6B | $916.6M | $643.7M | 58.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+5.3 pts
Year-over-year change
Dec 31, 2022
+5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement is the larger increase in revenue relative to the increase in cost of revenue, which reduced the cost of revenue as a share of revenue.
Compared to the immediately preceding quarter, gross margin improved, and compared to the same quarter one year earlier, gross margin also improved.
The proportion of cost of revenue to revenue should be monitored as it directly influences gross margin.