Ralph Lauren Corporation stock research
FY2024 Q2
Ralph Lauren (RL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit improved relative to both periods, while cost of revenue increased from the prior quarter but was roughly level year-over-year, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q2
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit improved relative to both periods, while cost of revenue increased from the prior quarter but was roughly level year-over-year, resulting in a gross margin that weakened from the prior quarter but improved from the same quarter last year.
- The gross margin improved year-over-year, driven by gross profit growing faster than revenue relative to the prior year period. The sequential decline in gross margin was accompanied by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, gross margin weakened as cost of revenue rose faster than revenue. Compared to the same quarter last year, gross margin improved, with gross profit increasing while revenue remained stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.5%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$562.9M
Quarter-over-quarter change
-3.4 pts
Year-over-year change
+0.8 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% |
| Sep 30, 2023 | $1.6B | $1.1B | $562.9M | 65.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 1, 2023
-3.4 pts
Year-over-year change
Oct 1, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year, driven by gross profit growing faster than revenue relative to the prior year period. The sequential decline in gross margin was accompanied by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, gross margin weakened as cost of revenue rose faster than revenue. Compared to the same quarter last year, gross margin improved, with gross profit increasing while revenue remained stable.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential increase outpaced revenue growth and compressed gross margin.