The Estée Lauder Companies Inc. stock research
FY2023 Q3
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both decreased compared to both the prior quarter and the same quarter last year, while cost of revenue remained stable quarter-over-quarter but rose year-over-year. The gross margin weakened from both the preceding quarter and the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q3
Revenue and gross profit both decreased compared to both the prior quarter and the same quarter last year, while cost of revenue remained stable quarter-over-quarter but rose year-over-year. The gross margin weakened from both the preceding quarter and the year-ago period.
- The primary observable driver of gross margin was the relationship between a stable cost of revenue and a lower revenue base, which compressed the margin. No specific product or segment driver can be inferred from the supplied data alone.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was nearly unchanged, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue and gross profit were also lower, and cost of revenue was higher, leading to a further decline in gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.1%
Gross profit
$2.6B
Revenue
$3.8B
Cost of revenue
$1.2B
Quarter-over-quarter change
n/a
Year-over-year change
-7.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.8B | $2.6B | $1.2B | 69.1% |
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
Mar 31, 2022
-7.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of gross margin was the relationship between a stable cost of revenue and a lower revenue base, which compressed the margin. No specific product or segment driver can be inferred from the supplied data alone.
Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was nearly unchanged, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue and gross profit were also lower, and cost of revenue was higher, leading to a further decline in gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its stability despite lower revenue was the key factor in margin compression.