The Sherwin-Williams Company stock research
FY2024 Q4
The Sherwin-Williams (SHW) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was unchanged compared to the same quarter one year earlier, while gross profit increased slightly, resulting in a marginally higher gross margin. Sequentially, revenue declined from the prior quarter, and gross margin weakened modestly as cost of revenue fell less than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was unchanged compared to the same quarter one year earlier, while gross profit increased slightly, resulting in a marginally higher gross margin. Sequentially, revenue declined from the prior quarter, and gross margin weakened modestly as cost of revenue fell less than revenue.
- Gross profit improved year over year despite flat revenue, indicating that cost of revenue was managed more effectively relative to the prior year period. The sequential decline in gross margin was driven by a proportionally smaller reduction in cost of revenue compared to the drop in revenue.
- Compared to the immediately preceding quarter, revenue was lower and gross margin weakened. Versus the same quarter one year earlier, revenue was stable and gross margin improved slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.6%
Gross profit
$2.6B
Revenue
$5.3B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+0.1 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, 2024 | $5.4B | $2.5B | $2.8B | 47.2% |
| Jun 30, 2024 | $6.3B | $3.1B | $3.2B | 48.8% |
| Sep 30, 2024 | $6.2B | $3.0B | $3.1B | 49.1% |
| Dec 31, 2024 | $5.3B | $2.6B | $2.7B | 48.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.6 pts
Year-over-year change
Dec 31, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit improved year over year despite flat revenue, indicating that cost of revenue was managed more effectively relative to the prior year period. The sequential decline in gross margin was driven by a proportionally smaller reduction in cost of revenue compared to the drop in revenue.
Compared to the immediately preceding quarter, revenue was lower and gross margin weakened. Versus the same quarter one year earlier, revenue was stable and gross margin improved slightly.
Monitor the relationship between revenue and cost of revenue in future quarters to assess whether the year-over-year improvement in gross margin can be sustained.