Garmin Ltd. stock research
FY2024 Q1
Garmin (GRMN) Gross Margin — Quarter Ended Mar 30, 2024
Revenue and gross profit increased compared to the same quarter last year, while cost of revenue also rose, leading to an improved gross margin. Relative to the immediate prior quarter, revenue was lower and gross margin weakened slightly.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q1
Revenue and gross profit increased compared to the same quarter last year, while cost of revenue also rose, leading to an improved gross margin. Relative to the immediate prior quarter, revenue was lower and gross margin weakened slightly.
- The most notable driver of the current quarter's gross margin is the year-over-year improvement, as the proportion of revenue retained as gross profit increased.
- Compared to the prior quarter, gross margin declined modestly, with both revenue and gross profit lower and cost of revenue also decreasing. Compared to the same quarter last year, gross margin improved, as revenue and gross profit grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.1%
Gross profit
$802.1M
Revenue
$1.4B
Cost of revenue
$579.5M
Quarter-over-quarter change
-0.2 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 |
|---|---|---|---|---|
| Jul 1, 2023 | $1.3B | $759.4M | $561.4M | 57.5% |
| Sep 30, 2023 | $1.3B | $728.6M | $549.0M | 57.0% |
| Dec 30, 2023 | $1.5B | $864.1M | $618.4M | 58.3% |
| Mar 30, 2024 | $1.4B | $802.1M | $579.5M | 58.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
-0.2 pts
Year-over-year change
Apr 1, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver of the current quarter's gross margin is the year-over-year improvement, as the proportion of revenue retained as gross profit increased.
Compared to the prior quarter, gross margin declined modestly, with both revenue and gross profit lower and cost of revenue also decreasing. Compared to the same quarter last year, gross margin improved, as revenue and gross profit grew more than cost of revenue.
Monitor whether the sequential decline in gross margin continues or reverses in upcoming quarters.