McCormick & Company, Incorporated stock research
FY2025 Q1
McCormick & (MKC) Gross Margin — Quarter Ended Feb 28, 2025
Revenue was stable compared to the same quarter last year and lower than the prior quarter. Gross profit and gross margin improved slightly year over year but weakened sequentially, as cost of revenue declined less than revenue on a sequential basis.
Gross margin takeaway
Quarter ended Feb 28, 2025 · FY2025 Q1
Revenue was stable compared to the same quarter last year and lower than the prior quarter. Gross profit and gross margin improved slightly year over year but weakened sequentially, as cost of revenue declined less than revenue on a sequential basis.
- The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a slight reduction in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin weakened as revenue fell more sharply than cost of revenue. Compared to the same quarter last year, gross margin improved modestly with revenue nearly unchanged and cost of revenue slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$604.0M
Revenue
$1.6B
Cost of revenue
$1.0B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
+0.2 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, 2024 | $1.6B | $619.6M | $1.0B | 37.7% |
| Aug 31, 2024 | $1.7B | $649.9M | $1.0B | 38.7% |
| Nov 30, 2024 | $1.8B | $722.2M | $1.1B | 40.2% |
| Feb 28, 2025 | $1.6B | $604.0M | $1.0B | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 30, 2024
-2.5 pts
Year-over-year change
Feb 29, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a slight reduction in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin weakened as revenue fell more sharply than cost of revenue. Compared to the same quarter last year, gross margin improved modestly with revenue nearly unchanged and cost of revenue slightly lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin sustainability.