Ralph Lauren Corporation stock research
FY2025 Q2
Ralph Lauren (RL) Gross Margin — Quarter Ended Sep 28, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened from the prior quarter but improved from a year ago, as cost of revenue rose at a faster rate than revenue relative to the prior quarter.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened from the prior quarter but improved from a year ago, as cost of revenue rose at a faster rate than revenue relative to the prior quarter.
- The strongest observable margin driver is the relationship between revenue and cost of revenue. Revenue grew while cost of revenue declined year over year, supporting margin expansion.
- Compared to the prior quarter, gross margin was lower as cost of revenue increased more than revenue. Compared to the same quarter last year, gross margin was higher, with revenue rising and cost of revenue declining.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.0%
Gross profit
$1.2B
Revenue
$1.7B
Cost of revenue
$570.3M
Quarter-over-quarter change
-3.5 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2024 | $1.7B | $1.2B | $570.3M | 67.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
-3.5 pts
Year-over-year change
Sep 30, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue. Revenue grew while cost of revenue declined year over year, supporting margin expansion.
Compared to the prior quarter, gross margin was lower as cost of revenue increased more than revenue. Compared to the same quarter last year, gross margin was higher, with revenue rising and cost of revenue declining.
Monitor the trend in cost of revenue relative to revenue, as its increase from the prior quarter outpaced revenue growth.