Ralph Lauren Corporation stock research
FY2024 Q3
Ralph Lauren (RL) Gross Margin — Quarter Ended Dec 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less proportionally, leading to an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose less proportionally, leading to an improved gross margin. The gross margin strengthened sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost control.
- The strongest observable margin driver is the gross margin itself, which improved both sequentially and year-over-year, indicating that revenue growth outpaced cost of revenue growth.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.5%
Gross profit
$1.3B
Revenue
$1.9B
Cost of revenue
$648.0M
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.5 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% |
| Dec 30, 2023 | $1.9B | $1.3B | $648.0M | 66.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.0 pts
Year-over-year change
Dec 31, 2022
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the gross margin itself, which improved both sequentially and year-over-year, indicating that revenue growth outpaced cost of revenue growth.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly lower.
Monitor the trend in cost of revenue relative to revenue, as its lower growth contributed to the margin improvement.