The Sherwin-Williams Company stock research
FY2024 Q2
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but higher than the preceding quarter. Gross margin improved sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost management.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was lower than a year ago but higher than the preceding quarter. Gross margin improved sequentially and year-over-year, reflecting a favorable relationship between revenue growth and cost management.
- The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the same quarter last year, supported by revenue growth that outpaced the change in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.8%
Gross profit
$3.1B
Revenue
$6.3B
Cost of revenue
$3.2B
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+2.8 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 | $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% |
| Jun 30, 2024 | $6.3B | $3.1B | $3.2B | 48.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.7 pts
Year-over-year change
Jun 30, 2023
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the same quarter last year, supported by revenue growth that outpaced the change in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it increased sequentially despite a year-over-year decline.