Garmin Ltd. stock research
FY2023 Q2
Garmin (GRMN) Gross Margin — Quarter Ended Jul 1, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year earlier.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year earlier.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the prior quarter, leading to a higher gross margin.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.5%
Gross profit
$759.4M
Revenue
$1.3B
Cost of revenue
$561.4M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-1.2 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% |
| Jul 1, 2023 | $1.3B | $759.4M | $561.4M | 57.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.6 pts
Year-over-year change
Jun 25, 2022
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the prior quarter, leading to a higher gross margin.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the trend in cost of revenue relative to revenue, as its growth rate may affect future gross margin stability.