Stanley Black & Decker, Inc. stock research
FY2023 Q4
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Dec 30, 2023
Revenue decreased from the prior quarter, while gross profit held steady. The lower cost of revenue led to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2023 Q4
Revenue decreased from the prior quarter, while gross profit held steady. The lower cost of revenue led to an improved gross margin.
- The most notable margin driver was the reduction in cost of revenue, which decreased more than the decline in revenue, allowing gross profit to remain stable while margin expanded.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was unchanged, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue was lower but gross profit was higher, with cost of revenue substantially lower, leading to a markedly improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.6%
Gross profit
$1.1B
Revenue
$3.7B
Cost of revenue
$2.6B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+10.7 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $3.9B | $835.5M | $3.1B | 21.2% |
| Jul 1, 2023 | $4.2B | $932.1M | $3.2B | 22.4% |
| Sep 30, 2023 | $4.0B | $1.1B | $2.9B | 26.8% |
| Dec 30, 2023 | $3.7B | $1.1B | $2.6B | 29.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+2.7 pts
Year-over-year change
Dec 31, 2022
+10.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the reduction in cost of revenue, which decreased more than the decline in revenue, allowing gross profit to remain stable while margin expanded.
Compared to the immediately preceding quarter, revenue was lower and gross profit was unchanged, resulting in a higher gross margin. Relative to the same quarter one year earlier, revenue was lower but gross profit was higher, with cost of revenue substantially lower, leading to a markedly improved gross margin.
Monitor the trend of cost of revenue relative to revenue to assess margin sustainability.