McCormick & Company, Incorporated stock research
FY2024 Q1
McCormick & (MKC) Gross Margin — Quarter Ended Feb 29, 2024
Revenue was stable compared to the same quarter last year, while gross profit improved and cost of revenue remained nearly unchanged, leading to a higher gross margin. Sequentially, revenue, gross profit, and gross margin all declined from the prior quarter.
Gross margin takeaway
Quarter ended Feb 29, 2024 · FY2024 Q1
Revenue was stable compared to the same quarter last year, while gross profit improved and cost of revenue remained nearly unchanged, leading to a higher gross margin. Sequentially, revenue, gross profit, and gross margin all declined from the prior quarter.
- The gross margin improved year over year as gross profit grew while cost of revenue was essentially flat. Sequentially, the margin weakened because gross profit declined more sharply than cost of revenue.
- Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue was similar, 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
37.4%
Gross profit
$599.3M
Revenue
$1.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
-2.6 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| May 31, 2023 | $1.7B | $615.5M | $1.0B | 37.1% |
| Aug 31, 2023 | $1.7B | $622.8M | $1.1B | 37.0% |
| Nov 30, 2023 | $1.8B | $701.3M | $1.1B | 40.0% |
| Feb 29, 2024 | $1.6B | $599.3M | $1.0B | 37.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2023
-2.6 pts
Year-over-year change
Feb 28, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year over year as gross profit grew while cost of revenue was essentially flat. Sequentially, the margin weakened because gross profit declined more sharply than cost of revenue.
Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Versus the same quarter last year, revenue was similar, gross profit was higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its stability year over year contrasted with a sequential increase.