The Hershey Company stock research
FY2023 Q4
The Hershey (HSY) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was unchanged from the same quarter one year earlier, while gross profit and cost of revenue also remained at similar levels. Gross margin weakened slightly compared to both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was unchanged from the same quarter one year earlier, while gross profit and cost of revenue also remained at similar levels. Gross margin weakened slightly compared to both the immediately preceding quarter and the same quarter one year earlier.
- Gross margin declined from the prior quarter as gross profit decreased more than proportionally relative to revenue. The year-over-year comparison shows a similar weakening, with gross margin slightly lower despite stable revenue.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was stable, gross profit was stable, but gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.3%
Gross profit
$1.1B
Revenue
$2.7B
Cost of revenue
$1.5B
Quarter-over-quarter change
-2.6 pts
Year-over-year change
-0.9 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% |
| Oct 1, 2023 | $3.0B | $1.4B | $1.7B | 44.9% |
| Dec 31, 2023 | $2.7B | $1.1B | $1.5B | 42.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 1, 2023
-2.6 pts
Year-over-year change
Dec 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined from the prior quarter as gross profit decreased more than proportionally relative to revenue. The year-over-year comparison shows a similar weakening, with gross margin slightly lower despite stable revenue.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was stable, gross profit was stable, but gross margin was slightly lower.
Monitor the relationship between cost of revenue and revenue in upcoming quarters to assess whether gross margin stabilizes or continues to weaken.