The Estée Lauder Companies Inc. stock research
FY2024 Q3
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased from the prior quarter but increased year-over-year. Gross margin weakened sequentially but improved compared to the same quarter last year, driven by a lower cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q3
Revenue decreased from the prior quarter but increased year-over-year. Gross margin weakened sequentially but improved compared to the same quarter last year, driven by a lower cost of revenue.
- Year-over-year gross margin improvement was the strongest observable driver, supported by both revenue growth and a reduction in cost of revenue.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue decreased, resulting in a slightly weaker gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.9%
Gross profit
$2.8B
Revenue
$3.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+2.8 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 | $3.6B | $2.4B | $1.2B | 67.8% |
| Sep 30, 2023 | $3.5B | $2.4B | $1.1B | 69.6% |
| Dec 31, 2023 | $4.3B | $3.1B | $1.2B | 73.0% |
| Mar 31, 2024 | $3.9B | $2.8B | $1.1B | 71.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.1 pts
Year-over-year change
Mar 31, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Year-over-year gross margin improvement was the strongest observable driver, supported by both revenue growth and a reduction in cost of revenue.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue decreased, resulting in a slightly weaker gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was lower, and gross margin strengthened.
Monitor the trend in cost of revenue, as it decreased both sequentially and year-over-year, impacting gross margin movements.