Deckers Outdoor Corporation stock research
FY2025 Q1
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Jun 30, 2024
Revenue minus cost of revenue equals gross profit, and gross margin is the ratio of gross profit to revenue. In the current quarter, gross margin was higher than both the preceding quarter and the same quarter a year earlier, reflecting a larger share of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2025 Q1
Revenue minus cost of revenue equals gross profit, and gross margin is the ratio of gross profit to revenue. In the current quarter, gross margin was higher than both the preceding quarter and the same quarter a year earlier, reflecting a larger share of revenue retained as gross profit.
- The strongest observable margin driver is the improvement in gross margin percentage, which increased relative to both the prior quarter and the same quarter last year. This indicates a greater proportion of revenue being retained as gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.9%
Gross profit
$470.0M
Revenue
$825.3M
Cost of revenue
$355.3M
Quarter-over-quarter change
-1.8 pts
Year-over-year change
+5.7 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% |
| Jun 30, 2024 | $825.3M | $470.0M | $355.3M | 56.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.8 pts
Year-over-year change
Jun 30, 2023
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin percentage, which increased relative to both the prior quarter and the same quarter last year. This indicates a greater proportion of revenue being retained as gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, while cost of revenue also increased.
Monitor the trend in cost of revenue relative to revenue, as changes in this relationship directly affect gross margin.