The Sherwin-Williams Company stock research
FY2023 Q3
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Gross profit was stable compared to the prior quarter and higher year over year, while cost of revenue decreased both sequentially and annually, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Gross profit was stable compared to the prior quarter and higher year over year, while cost of revenue decreased both sequentially and annually, resulting in an improved gross margin.
- The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue.
- Compared to the prior quarter, revenue was slightly lower while gross profit was stable, leading to a higher gross margin. Versus the same quarter last year, revenue and gross profit were both higher, and the gross margin improved notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.7%
Gross profit
$2.9B
Revenue
$6.1B
Cost of revenue
$3.2B
Quarter-over-quarter change
+1.7 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $5.4B | $2.4B | $3.0B | 44.5% |
| Jun 30, 2023 | $6.2B | $2.9B | $3.4B | 46.0% |
| Sep 30, 2023 | $6.1B | $2.9B | $3.2B | 47.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.7 pts
Year-over-year change
Sep 30, 2022
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue.
Compared to the prior quarter, revenue was slightly lower while gross profit was stable, leading to a higher gross margin. Versus the same quarter last year, revenue and gross profit were both higher, and the gross margin improved notably.
Monitor the trend in cost of revenue, as its decline was the primary factor behind the gross margin improvement.