Stanley Black & Decker, Inc. stock research
FY2024 Q1
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Mar 30, 2024
Revenue was stable versus the prior year and higher sequentially. Gross profit improved significantly year-over-year driven by a lower cost of revenue, resulting in a gross margin that strengthened compared to the year-ago quarter but weakened relative to the immediate prior quarter.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q1
Revenue was stable versus the prior year and higher sequentially. Gross profit improved significantly year-over-year driven by a lower cost of revenue, resulting in a gross margin that strengthened compared to the year-ago quarter but weakened relative to the immediate prior quarter.
- The primary margin driver was the reduction in cost of revenue relative to the same quarter last year, which outpaced the slight decline in revenue and substantially lifted gross profit.
- Compared to the prior quarter, gross margin was lower as cost of revenue increased at a faster rate than revenue. Versus the year-ago quarter, gross margin was higher due to a lower cost of revenue on similar revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.6%
Gross profit
$1.1B
Revenue
$3.9B
Cost of revenue
$2.8B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+7.4 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2024 | $3.9B | $1.1B | $2.8B | 28.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
-0.9 pts
Year-over-year change
Apr 1, 2023
+7.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver was the reduction in cost of revenue relative to the same quarter last year, which outpaced the slight decline in revenue and substantially lifted gross profit.
Compared to the prior quarter, gross margin was lower as cost of revenue increased at a faster rate than revenue. Versus the year-ago quarter, gross margin was higher due to a lower cost of revenue on similar revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its recent increase from the prior quarter pressured gross margin.