Deckers Outdoor Corporation stock research
FY2025 Q2
Deckers Outdoor (DECK) Gross Margin — Quarter Ended Sep 30, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin declined slightly from the prior quarter but improved year-over-year, reflecting a shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin declined slightly from the prior quarter but improved year-over-year, reflecting a shift in the relationship between revenue and cost of revenue.
- The strongest observable margin driver is the relative growth rates of revenue and cost of revenue. In the current quarter, revenue grew faster than cost of revenue compared to a year ago, lifting the margin, but sequentially cost of revenue grew faster than revenue, slightly compressing the margin.
- Compared to the immediately preceding quarter, gross margin weakened as the proportion of cost of revenue to revenue increased. Compared to the same quarter one year earlier, gross margin improved as revenue grew at a higher rate than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.9%
Gross profit
$733.3M
Revenue
$1.3B
Cost of revenue
$578.0M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
+2.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.3B | $733.3M | $578.0M | 55.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.0 pts
Year-over-year change
Sep 30, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative growth rates of revenue and cost of revenue. In the current quarter, revenue grew faster than cost of revenue compared to a year ago, lifting the margin, but sequentially cost of revenue grew faster than revenue, slightly compressing the margin.
Compared to the immediately preceding quarter, gross margin weakened as the proportion of cost of revenue to revenue increased. Compared to the same quarter one year earlier, gross margin improved as revenue grew at a higher rate than cost of revenue.
Monitor the trend of cost of revenue growth relative to revenue growth in the coming quarters to assess whether the sequential margin compression persists.