McCormick & Company, Incorporated stock research
FY2024 Q2
McCormick & (MKC) Gross Margin — Quarter Ended May 31, 2024
Revenue was stable compared to the prior quarter and slightly lower than the same quarter last year. Gross profit and gross margin improved relative to both the preceding quarter and the year-ago period, driven by a lower cost of revenue relative to sales.
Gross margin takeaway
Quarter ended May 31, 2024 · FY2024 Q2
Revenue was stable compared to the prior quarter and slightly lower than the same quarter last year. Gross profit and gross margin improved relative to both the preceding quarter and the year-ago period, driven by a lower cost of revenue relative to sales.
- The gross margin strengthened sequentially and year-over-year, as gross profit grew while cost of revenue declined relative to revenue.
- Compared to the immediately preceding quarter, revenue was stable, gross profit was higher, and gross margin improved. Versus the same quarter one year earlier, revenue was lower, but 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
37.7%
Gross profit
$619.6M
Revenue
$1.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| 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% |
| May 31, 2024 | $1.6B | $619.6M | $1.0B | 37.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 29, 2024
+0.3 pts
Year-over-year change
May 31, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, as gross profit grew while cost of revenue declined relative to revenue.
Compared to the immediately preceding quarter, revenue was stable, gross profit was higher, and gross margin improved. Versus the same quarter one year earlier, revenue was lower, but gross profit was higher and gross margin improved.
Monitor whether the cost of revenue can continue to decline relative to revenue in upcoming quarters.