Garmin Ltd. stock research
FY2024 Q2
Garmin (GRMN) Gross Margin — Quarter Ended Jun 29, 2024
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 weakened slightly from the prior quarter but was stable relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 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 weakened slightly from the prior quarter but was stable relative to the year-ago period.
- 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 year-ago quarter, supporting gross profit expansion.
- Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew at a faster pace than revenue. Compared to the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.3%
Gross profit
$862.9M
Revenue
$1.5B
Cost of revenue
$643.8M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $1.5B | $862.9M | $643.8M | 57.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
-0.8 pts
Year-over-year change
Jul 1, 2023
-0.2 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 year-ago quarter, supporting gross profit expansion.
Compared to the immediately preceding quarter, gross margin was lower, as cost of revenue grew at a faster pace than revenue. Compared to the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in the current quarter contributed to the margin decline from the prior period.