The Sherwin-Williams Company stock research
FY2024 Q1
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved year-over-year while cost of revenue declined, resulting in a higher gross margin; sequentially, gross profit was flat but cost of revenue increased slightly, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable compared to both the prior quarter and the same quarter last year. Gross profit improved year-over-year while cost of revenue declined, resulting in a higher gross margin; sequentially, gross profit was flat but cost of revenue increased slightly, leading to a lower gross margin.
- The year-over-year improvement in gross margin was driven by a lower cost of revenue relative to revenue, as gross profit increased while revenue was essentially unchanged. Sequentially, the slight increase in cost of revenue relative to stable revenue and gross profit weakened the margin.
- Compared to the prior quarter, gross margin was lower, reflecting a slightly higher cost of revenue against stable revenue and gross profit. Compared to the same quarter last year, gross margin was higher, driven by a lower cost of revenue and higher gross profit on similar revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.2%
Gross profit
$2.5B
Revenue
$5.4B
Cost of revenue
$2.8B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $6.2B | $2.9B | $3.4B | 46.0% |
| Sep 30, 2023 | $6.1B | $2.9B | $3.2B | 47.7% |
| Dec 31, 2023 | $5.3B | $2.5B | $2.7B | 48.5% |
| Mar 31, 2024 | $5.4B | $2.5B | $2.8B | 47.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.4 pts
Year-over-year change
Mar 31, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by a lower cost of revenue relative to revenue, as gross profit increased while revenue was essentially unchanged. Sequentially, the slight increase in cost of revenue relative to stable revenue and gross profit weakened the margin.
Compared to the prior quarter, gross margin was lower, reflecting a slightly higher cost of revenue against stable revenue and gross profit. Compared to the same quarter last year, gross margin was higher, driven by a lower cost of revenue and higher gross profit on similar revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its movement directly influenced both the sequential and year-over-year margin changes.