The Estée Lauder Companies Inc. stock research
FY2024 Q4
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit held at the prior quarter's level, while cost of revenue was essentially unchanged, resulting in gross margin that was slightly lower but still within a narrow range. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved meaningfully.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q4
Revenue and gross profit held at the prior quarter's level, while cost of revenue was essentially unchanged, resulting in gross margin that was slightly lower but still within a narrow range. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved meaningfully.
- The gross margin improvement relative to the year-ago quarter was the most notable observable shift, driven by a combination of higher gross profit and lower cost of revenue. The current quarter's gross margin remained stable versus the immediate prior quarter, with no material change in the underlying components.
- Compared with the immediately preceding quarter, revenue and gross profit were similar, cost of revenue was similar, and gross margin held steady. Versus the same quarter one year ago, revenue and gross profit were higher, cost of revenue was lower, and gross margin was stronger.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.8%
Gross profit
$2.8B
Revenue
$3.9B
Cost of revenue
$1.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+4.0 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 | $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% |
| Jun 30, 2024 | $3.9B | $2.8B | $1.1B | 71.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.1 pts
Year-over-year change
Jun 30, 2023
+4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement relative to the year-ago quarter was the most notable observable shift, driven by a combination of higher gross profit and lower cost of revenue. The current quarter's gross margin remained stable versus the immediate prior quarter, with no material change in the underlying components.
Compared with the immediately preceding quarter, revenue and gross profit were similar, cost of revenue was similar, and gross margin held steady. Versus the same quarter one year ago, revenue and gross profit were higher, cost of revenue was lower, and gross margin was stronger.
Monitor whether the year-over-year reduction in cost of revenue persists in the coming quarters, as it was a key factor in the gross margin expansion.