HA

Hasbro, Inc. stock research

Sep 29, 2024

FY2024 Q3

Hasbro (HAS) Gross Margin — Quarter Ended Sep 29, 2024

Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a faster pace, leading to a lower gross margin. Compared to the same quarter last year, revenue was lower, yet gross margin improved as cost of revenue declined more sharply.

Gross margin takeaway

Quarter ended Sep 29, 2024 · FY2024 Q3

Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a faster pace, leading to a lower gross margin. Compared to the same quarter last year, revenue was lower, yet gross margin improved as cost of revenue declined more sharply.

  • The primary driver of the gross margin change was the relationship between cost of revenue and revenue. Sequentially, cost of revenue increased proportionally more than revenue, while year-over-year, cost of revenue decreased proportionally more than revenue.
  • Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

70.4%

Gross profit

$902.4M

Revenue

$1.3B

Cost of revenue

$378.9M

Quarter-over-quarter change

-5.7 pts

Year-over-year change

+3.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.3B$714.9M$574.0M55.5%
Mar 31, 2024$757.3M$553.1M$204.2M73.0%
Jun 30, 2024$995.3M$757.6M$237.7M76.1%
Sep 29, 2024$1.3B$902.4M$378.9M70.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-5.7 pts

Year-over-year change

Oct 1, 2023

+3.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver of the gross margin change was the relationship between cost of revenue and revenue. Sequentially, cost of revenue increased proportionally more than revenue, while year-over-year, cost of revenue decreased proportionally more than revenue.

Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved.

Monitor the trend of cost of revenue relative to revenue in future quarters.