The Estée Lauder Companies Inc. stock research
FY2023 Q4
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue declined compared to the prior quarter, while cost of revenue remained unchanged, leading to a lower gross profit and gross margin. Compared to the same quarter last year, revenue was flat but cost of revenue was higher, resulting in a decrease in gross profit and gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue declined compared to the prior quarter, while cost of revenue remained unchanged, leading to a lower gross profit and gross margin. Compared to the same quarter last year, revenue was flat but cost of revenue was higher, resulting in a decrease in gross profit and gross margin.
- The primary observable driver of the gross margin decline was the combination of lower revenue sequentially and higher cost of revenue year-over-year, while cost of revenue remained flat sequentially.
- Sequentially, gross margin weakened from the prior quarter as revenue decreased and gross profit declined while cost of revenue was unchanged. Compared to the same quarter last year, gross margin also weakened, with revenue flat but cost of revenue higher and gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.8%
Gross profit
$2.4B
Revenue
$3.6B
Cost of revenue
$1.2B
Quarter-over-quarter change
-1.3 pts
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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.8B | $2.6B | $1.2B | 69.1% |
| Jun 30, 2023 | $3.6B | $2.4B | $1.2B | 67.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.3 pts
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 primary observable driver of the gross margin decline was the combination of lower revenue sequentially and higher cost of revenue year-over-year, while cost of revenue remained flat sequentially.
Sequentially, gross margin weakened from the prior quarter as revenue decreased and gross profit declined while cost of revenue was unchanged. Compared to the same quarter last year, gross margin also weakened, with revenue flat but cost of revenue higher and gross profit lower.
Monitor the trend in cost of revenue, as it was stable sequentially but increased year-over-year, and its relationship with revenue.