Ralph Lauren Corporation stock research
FY2024 Q1
Ralph Lauren (RL) Gross Margin — Quarter Ended Jul 1, 2023
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved relative to the prior quarter, while cost of revenue declined, resulting in a higher gross margin; versus the year-ago quarter, gross profit was similar and cost of revenue was lower, leading to a slightly higher gross margin.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2024 Q1
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved relative to the prior quarter, while cost of revenue declined, resulting in a higher gross margin; versus the year-ago quarter, gross profit was similar and cost of revenue was lower, leading to a slightly higher gross margin.
- The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported the improvement in gross margin.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue unchanged and cost of revenue lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.0%
Gross profit
$1.0B
Revenue
$1.5B
Cost of revenue
$464.5M
Quarter-over-quarter change
+7.3 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $1.5B | $950.6M | $590.2M | 61.7% |
| Jul 1, 2023 | $1.5B | $1.0B | $464.5M | 69.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+7.3 pts
Year-over-year change
Jul 2, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to the prior quarter, which directly supported the improvement in gross margin.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue decreased while revenue held steady. Versus the same quarter one year earlier, gross margin was slightly higher, with revenue unchanged and cost of revenue lower.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement.