Kenvue Inc. stock research
FY2024 Q3
Kenvue (KVUE) Gross Margin — Quarter Ended Sep 29, 2024
Revenue was stable compared to the same quarter last year and slightly lower than the prior quarter. Gross profit and cost of revenue moved in line with revenue, while gross margin improved year over year but weakened slightly from the preceding quarter.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue was stable compared to the same quarter last year and slightly lower than the prior quarter. Gross profit and cost of revenue moved in line with revenue, while gross margin improved year over year but weakened slightly from the preceding quarter.
- Gross margin was higher than the same quarter one year earlier, indicating improved profitability per dollar of revenue. The slight decline from the prior quarter was driven by a proportionally larger decrease in gross profit relative to revenue.
- Compared to the prior quarter, revenue and gross profit were both lower, while cost of revenue remained unchanged, resulting in a slightly weakened gross margin. Versus the same quarter last year, revenue was stable, gross profit was stable, and cost of revenue was lower, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.5%
Gross profit
$2.3B
Revenue
$3.9B
Cost of revenue
$1.6B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Oct 1, 2023 | $3.9B | $2.3B | $1.7B | 57.5% |
| Mar 31, 2024 | $3.9B | $2.2B | $1.7B | 57.6% |
| Jun 30, 2024 | $4.0B | $2.4B | $1.6B | 59.1% |
| Sep 29, 2024 | $3.9B | $2.3B | $1.6B | 58.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.6 pts
Year-over-year change
Oct 1, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher than the same quarter one year earlier, indicating improved profitability per dollar of revenue. The slight decline from the prior quarter was driven by a proportionally larger decrease in gross profit relative to revenue.
Compared to the prior quarter, revenue and gross profit were both lower, while cost of revenue remained unchanged, resulting in a slightly weakened gross margin. Versus the same quarter last year, revenue was stable, gross profit was stable, and cost of revenue was lower, leading to an improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as it remained flat quarter over quarter despite lower revenue, which compressed gross margin.