HS

Henry Schein, Inc. stock research

Jun 29, 2024

FY2024 Q2

Henry Schein (HSIC) Gross Margin — Quarter Ended Jun 29, 2024

Compared with the prior quarter, revenue was lower but cost of revenue decreased more, resulting in an improved gross margin. Versus the same quarter last year, gross profit was higher while revenue held steady, also lifting the gross margin.

Gross margin takeaway

Quarter ended Jun 29, 2024 · FY2024 Q2

Compared with the prior quarter, revenue was lower but cost of revenue decreased more, resulting in an improved gross margin. Versus the same quarter last year, gross profit was higher while revenue held steady, also lifting the gross margin.

  • The reduction in cost of revenue relative to the prior quarter was the primary driver of the sequential gross margin improvement. On a year-over-year basis, the increase in gross profit with revenue unchanged drove the margin expansion.
  • Gross margin improved sequentially from the prior quarter and also improved compared with the same quarter a year earlier.

Gross margin snapshot

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

Gross margin

32.5%

Gross profit

$1.0B

Revenue

$3.1B

Cost of revenue

$2.1B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

+1.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$3.2B$995.0M$2.2B31.5%
Dec 30, 2023$3.0B$924.0M$2.1B30.6%
Mar 30, 2024$3.2B$1.0B$2.2B31.9%
Jun 29, 2024$3.1B$1.0B$2.1B32.5%

Quarterly comparisons

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

Previous-quarter change

Mar 30, 2024

+0.6 pts

Year-over-year change

Jul 1, 2023

+1.0 pts

What the margin says

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

The reduction in cost of revenue relative to the prior quarter was the primary driver of the sequential gross margin improvement. On a year-over-year basis, the increase in gross profit with revenue unchanged drove the margin expansion.

Gross margin improved sequentially from the prior quarter and also improved compared with the same quarter a year earlier.

Monitor whether revenue trends stabilize or strengthen while cost control continues.