Ralph Lauren Corporation stock research
FY2024 Q4
Ralph Lauren (RL) Gross Margin — Quarter Ended Mar 30, 2024
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin was stable sequentially and improved year over year, as cost of revenue declined relative to revenue in the year-ago comparison.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q4
Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin was stable sequentially and improved year over year, as cost of revenue declined relative to revenue in the year-ago comparison.
- The strongest observable margin driver is the year-over-year improvement in gross margin, supported by a lower cost of revenue relative to revenue. This contributed to a higher gross profit despite a smaller revenue base compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.6%
Gross profit
$1.0B
Revenue
$1.6B
Cost of revenue
$524.2M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+4.9 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2024 | $1.6B | $1.0B | $524.2M | 66.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+0.1 pts
Year-over-year change
Apr 1, 2023
+4.9 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 lower cost of revenue relative to revenue. This contributed to a higher gross profit despite a smaller revenue base compared to the prior quarter.
Compared to the immediately preceding quarter, revenue and gross profit were lower, while gross margin was stable. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was a key factor in the year-over-year margin improvement.