McCormick & Company, Incorporated stock research
FY2023 Q1
McCormick & (MKC) Gross Margin — Quarter Ended Feb 28, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly versus both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Feb 28, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened slightly versus both the prior quarter and the same quarter last year.
- The gross margin decline was driven by a proportionally smaller decrease in cost of revenue relative to the drop in revenue, resulting in a lower margin.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter last year, revenue was higher but gross profit was nearly stable, while gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$562.9M
Revenue
$1.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
n/a
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 |
|---|---|---|---|---|
| Feb 28, 2023 | $1.6B | $562.9M | $1.0B | 36.0% |
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
Feb 28, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was driven by a proportionally smaller decrease in cost of revenue relative to the drop in revenue, resulting in a lower margin.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter last year, revenue was higher but gross profit was nearly stable, while gross margin was slightly lower.
Monitor the relationship between revenue and cost of revenue trends, as the current quarter showed a smaller cost reduction relative to revenue decline.