Ralph Lauren Corporation stock research
FY2025 Q3
Ralph Lauren (RL) Gross Margin — Quarter Ended Dec 28, 2024
Gross profit increased relative to revenue, while cost of revenue grew at a slower pace, resulting in a higher gross margin compared with both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Dec 28, 2024 · FY2025 Q3
Gross profit increased relative to revenue, while cost of revenue grew at a slower pace, resulting in a higher gross margin compared with both the prior quarter and the same quarter last year.
- Revenue rose more sharply than cost of revenue, expanding gross margin sequentially and year-over-year. The stronger top-line growth relative to cost is the most observable driver this quarter.
- Gross margin improved from the prior quarter and also from the same quarter one year earlier. The increase was supported by revenue rising faster than cost of revenue in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
68.4%
Gross profit
$1.5B
Revenue
$2.1B
Cost of revenue
$677.4M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| 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% |
| Dec 28, 2024 | $2.1B | $1.5B | $677.4M | 68.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 28, 2024
+1.4 pts
Year-over-year change
Dec 30, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue rose more sharply than cost of revenue, expanding gross margin sequentially and year-over-year. The stronger top-line growth relative to cost is the most observable driver this quarter.
Gross margin improved from the prior quarter and also from the same quarter one year earlier. The increase was supported by revenue rising faster than cost of revenue in both comparisons.
Monitor whether the absolute level of cost of revenue continues to rise as revenue changes, as its growth rate remains a key factor for margin stability.