Stanley Black & Decker, Inc. stock research
FY2023 Q1
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Apr 1, 2023
Gross profit increased from the prior quarter even as revenue decreased, driven by a reduction in cost of revenue, which lifted gross margin. Compared to the same quarter last year, gross margin was lower as gross profit fell more sharply than revenue.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q1
Gross profit increased from the prior quarter even as revenue decreased, driven by a reduction in cost of revenue, which lifted gross margin. Compared to the same quarter last year, gross margin was lower as gross profit fell more sharply than revenue.
- The strongest observable margin driver was the reduction in cost of revenue, which declined while revenue decreased, leading to gross profit growth and margin expansion.
- Sequentially, gross margin improved, with gross profit higher and cost of revenue lower. Year over year, gross margin weakened, as gross profit decreased while cost of revenue remained similar.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.2%
Gross profit
$835.5M
Revenue
$3.9B
Cost of revenue
$3.1B
Quarter-over-quarter change
n/a
Year-over-year change
-8.1 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $3.9B | $835.5M | $3.1B | 21.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 2, 2022
-8.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue, which declined while revenue decreased, leading to gross profit growth and margin expansion.
Sequentially, gross margin improved, with gross profit higher and cost of revenue lower. Year over year, gross margin weakened, as gross profit decreased while cost of revenue remained similar.
Monitor future trends in cost of revenue to assess whether the improvement can be maintained.