The Estée Lauder Companies Inc. stock research
FY2025 Q1
The Estée Lauder Companies (EL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased compared with both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but stable year over year. Gross margin improved sequentially and year over year, as cost of revenue fell more sharply than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue decreased compared with both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but stable year over year. Gross margin improved sequentially and year over year, as cost of revenue fell more sharply than revenue.
- The strongest observable margin driver is the proportionally larger decline in cost of revenue relative to revenue, which lifted gross margin despite lower revenue.
- Compared with the prior quarter, revenue and gross profit were lower, but gross margin improved. Relative to the same quarter last year, revenue was slightly lower, gross profit was unchanged, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$2.4B
Revenue
$3.4B
Cost of revenue
$928.0M
Quarter-over-quarter change
+0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $3.4B | $2.4B | $928.0M | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.6 pts
Year-over-year change
Sep 30, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the proportionally larger decline in cost of revenue relative to revenue, which lifted gross margin despite lower revenue.
Compared with the prior quarter, revenue and gross profit were lower, but gross margin improved. Relative to the same quarter last year, revenue was slightly lower, gross profit was unchanged, and gross margin was higher.
Monitor whether the cost of revenue reductions can be sustained as revenue trends evolve.