Ralph Lauren Corporation stock research
FY2025 Q1
Ralph Lauren (RL) Gross Margin — Quarter Ended Jun 29, 2024
Revenue was stable year over year and slightly lower than the prior quarter, while gross profit increased and cost of revenue decreased, leading to gross margin improvement.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2025 Q1
Revenue was stable year over year and slightly lower than the prior quarter, while gross profit increased and cost of revenue decreased, leading to gross margin improvement.
- The most observable driver is the decline in cost of revenue relative to gross profit, which enabled gross margin to expand despite modest revenue changes.
- Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier, reflecting lower cost of revenue as a proportion of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.5%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$446.4M
Quarter-over-quarter change
+3.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $1.5B | $1.1B | $446.4M | 70.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
+3.9 pts
Year-over-year change
Jul 1, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the decline in cost of revenue relative to gross profit, which enabled gross margin to expand despite modest revenue changes.
Gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier, reflecting lower cost of revenue as a proportion of revenue.
Monitor whether the lower cost of revenue level is sustained or reverses in coming quarters.