KV

Kenvue Inc. stock research

Apr 2, 2023

FY2023 Q1

Kenvue (KVUE) Gross Margin — Quarter Ended Apr 2, 2023

Revenue and cost of revenue both increased compared to the prior quarter and the same quarter last year, with gross profit rising and gross margin improving. The current quarter's gross margin was higher than both the immediately preceding quarter and the year-ago quarter.

Gross margin takeaway

Quarter ended Apr 2, 2023 · FY2023 Q1

Revenue and cost of revenue both increased compared to the prior quarter and the same quarter last year, with gross profit rising and gross margin improving. The current quarter's gross margin was higher than both the immediately preceding quarter and the year-ago quarter.

  • Gross margin expanded relative to both the preceding quarter and the same quarter one year earlier, driven by a larger proportional increase in revenue compared to cost of revenue.
  • Compared to the prior quarter, gross margin strengthened; compared to the same quarter last year, gross margin also improved. Revenue, gross profit, and cost of revenue were all higher in both comparisons.

Gross margin snapshot

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

Gross margin

55.2%

Gross profit

$2.1B

Revenue

$3.9B

Cost of revenue

$1.7B

Quarter-over-quarter change

n/a

Year-over-year change

+0.7 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Apr 2, 2023$3.9B$2.1B$1.7B55.2%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Apr 3, 2022

+0.7 pts

What the margin says

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

Gross margin expanded relative to both the preceding quarter and the same quarter one year earlier, driven by a larger proportional increase in revenue compared to cost of revenue.

Compared to the prior quarter, gross margin strengthened; compared to the same quarter last year, gross margin also improved. Revenue, gross profit, and cost of revenue were all higher in both comparisons.

Monitor future relationships between revenue and cost of revenue to assess the sustainability of gross margin trends.