KV

Kenvue Inc. stock research

Dec 29, 2024

FY2024 Q4

Kenvue (KVUE) Gross Margin — Quarter Ended Dec 29, 2024

Revenue was slightly lower than the prior quarter, while gross profit decreased at a similar pace, resulting in a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved modestly.

Gross margin takeaway

Quarter ended Dec 29, 2024 · FY2024 Q4

Revenue was slightly lower than the prior quarter, while gross profit decreased at a similar pace, resulting in a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved modestly.

  • Cost of revenue remained unchanged from both the prior quarter and the year-ago quarter, while gross profit moved in line with revenue changes, making cost stability the most observable factor in margin movement.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

56.5%

Gross profit

$2.1B

Revenue

$3.7B

Cost of revenue

$1.6B

Quarter-over-quarter change

-2.0 pts

Year-over-year change

+0.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$3.9B$2.2B$1.7B57.6%
Jun 30, 2024$4.0B$2.4B$1.6B59.1%
Sep 29, 2024$3.9B$2.3B$1.6B58.5%
Dec 29, 2024$3.7B$2.1B$1.6B56.5%

Quarterly comparisons

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

Previous-quarter change

Sep 29, 2024

-2.0 pts

Year-over-year change

Dec 31, 2023

+0.8 pts

What the margin says

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

Cost of revenue remained unchanged from both the prior quarter and the year-ago quarter, while gross profit moved in line with revenue changes, making cost stability the most observable factor in margin movement.

Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

Monitor whether cost of revenue remains stable in future quarters, as it has been the primary anchor for gross margin comparisons.