The Hershey Company stock research
FY2023 Q2
The Hershey (HSY) Gross Margin — Quarter Ended Jul 2, 2023
Revenue and gross profit both improved compared to the same quarter one year earlier, while cost of revenue was nearly flat over that period. The gross margin strengthened relative to the prior year but weakened slightly from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Jul 2, 2023 · FY2023 Q2
Revenue and gross profit both improved compared to the same quarter one year earlier, while cost of revenue was nearly flat over that period. The gross margin strengthened relative to the prior year but weakened slightly from the immediately preceding quarter.
- Gross profit grew more than cost of revenue year over year, driving the margin higher. The strongest observable driver is the relative growth of gross profit compared to cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were each lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, both revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.5%
Gross profit
$1.1B
Revenue
$2.5B
Cost of revenue
$1.4B
Quarter-over-quarter change
-0.8 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 2, 2023 | $3.0B | $1.4B | $1.6B | 46.3% |
| Jul 2, 2023 | $2.5B | $1.1B | $1.4B | 45.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 2, 2023
-0.8 pts
Year-over-year change
Jul 3, 2022
+3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than cost of revenue year over year, driving the margin higher. The strongest observable driver is the relative growth of gross profit compared to cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were each lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, both revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Monitor any changes in the relationship between gross profit and cost of revenue to assess whether the margin can sustain its year-over-year improvement.