Stanley Black & Decker, Inc. stock research
FY2023 Q2
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Jul 1, 2023
Revenue increased compared to the immediately preceding quarter, leading to higher gross profit and an improved gross margin. However, against the same quarter one year earlier, revenue was lower while cost of revenue held steady, causing gross profit and gross margin to decline.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q2
Revenue increased compared to the immediately preceding quarter, leading to higher gross profit and an improved gross margin. However, against the same quarter one year earlier, revenue was lower while cost of revenue held steady, causing gross profit and gross margin to decline.
- The most notable driver was the change in revenue relative to cost of revenue. The year-over-year decline in revenue without a corresponding reduction in cost of revenue compressed gross margin.
- Sequentially, gross margin improved as revenue grew faster than cost of revenue. Year-over-year, gross margin weakened as revenue fell while cost of revenue remained similar.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.4%
Gross profit
$932.1M
Revenue
$4.2B
Cost of revenue
$3.2B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
-5.1 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% |
| Jul 1, 2023 | $4.2B | $932.1M | $3.2B | 22.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+1.2 pts
Year-over-year change
Jul 2, 2022
-5.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable driver was the change in revenue relative to cost of revenue. The year-over-year decline in revenue without a corresponding reduction in cost of revenue compressed gross margin.
Sequentially, gross margin improved as revenue grew faster than cost of revenue. Year-over-year, gross margin weakened as revenue fell while cost of revenue remained similar.
Monitor the relationship between revenue and cost of revenue, particularly whether cost of revenue can adjust to revenue changes.