Kenvue Inc. stock research
FY2024 Q1
Kenvue (KVUE) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue remained unchanged, leading to an improved gross margin. Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, while cost of revenue rose at a slower pace.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue remained unchanged, leading to an improved gross margin. Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased, while cost of revenue rose at a slower pace.
- The gross margin improved sequentially and year-over-year, driven by a higher gross profit relative to revenue. The strongest observable driver is the increase in gross profit outpacing the change in revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was 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
57.6%
Gross profit
$2.2B
Revenue
$3.9B
Cost of revenue
$1.7B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+2.4 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 | $3.9B | $2.1B | $1.7B | 55.2% |
| Jul 2, 2023 | $4.0B | $2.2B | $1.8B | 55.5% |
| Oct 1, 2023 | $3.9B | $2.3B | $1.7B | 57.5% |
| Mar 31, 2024 | $3.9B | $2.2B | $1.7B | 57.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 1, 2023
+0.1 pts
Year-over-year change
Apr 2, 2023
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a higher gross profit relative to revenue. The strongest observable driver is the increase in gross profit outpacing the change in revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was stable, and gross margin improved.
Monitor whether the gross margin can sustain its improvement if revenue growth slows or cost of revenue increases at a faster rate.