Garmin Ltd. stock research
FY2023 Q1
Garmin (GRMN) Gross Margin — Quarter Ended Apr 1, 2023
Revenue and gross profit for this quarter were lower than both the immediately preceding quarter and the same quarter one year earlier. Gross margin was slightly weaker than the prior quarter but slightly improved compared to the year-ago period, reflecting a relatively stable relationship among revenue, cost of revenue, and gross profit.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q1
Revenue and gross profit for this quarter were lower than both the immediately preceding quarter and the same quarter one year earlier. Gross margin was slightly weaker than the prior quarter but slightly improved compared to the year-ago period, reflecting a relatively stable relationship among revenue, cost of revenue, and gross profit.
- The most observable margin driver is the change in cost of revenue relative to revenue. The gross margin remained nearly unchanged from the prior quarter, with both revenue and cost of revenue moving lower, while the year-over-year improvement was supported by a larger proportional decline in cost of revenue compared to revenue.
- Compared to the previous quarter, revenue and gross profit were lower, while gross margin weakened slightly. Compared to the year-ago quarter, revenue and gross profit were also lower, but gross margin improved modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.9%
Gross profit
$652.8M
Revenue
$1.1B
Cost of revenue
$494.6M
Quarter-over-quarter change
n/a
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $1.1B | $652.8M | $494.6M | 56.9% |
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 26, 2022
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the change in cost of revenue relative to revenue. The gross margin remained nearly unchanged from the prior quarter, with both revenue and cost of revenue moving lower, while the year-over-year improvement was supported by a larger proportional decline in cost of revenue compared to revenue.
Compared to the previous quarter, revenue and gross profit were lower, while gross margin weakened slightly. Compared to the year-ago quarter, revenue and gross profit were also lower, but gross margin improved modestly.
Monitor the trend of cost of revenue relative to revenue, as small shifts in this ratio can influence gross margin direction.