Stanley Black & Decker, Inc. stock research
FY2024 Q2
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Jun 29, 2024
Revenue decreased versus both the prior quarter and the same quarter last year, while gross profit rose sharply year-over-year but held steady sequentially. The resulting gross margin improved significantly from a year earlier but weakened slightly from the preceding quarter.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q2
Revenue decreased versus both the prior quarter and the same quarter last year, while gross profit rose sharply year-over-year but held steady sequentially. The resulting gross margin improved significantly from a year earlier but weakened slightly from the preceding quarter.
- Year-over-year gross margin expansion was driven by a lower cost of revenue relative to revenue, as cost of revenue declined more than revenue did. The strongest observable margin driver is the reduction in cost of revenue compared with the year-ago period.
- Sequentially, gross margin was slightly lower as revenue decreased while gross profit remained essentially unchanged, causing cost of revenue to absorb a slightly larger share. Compared with the same quarter one year earlier, gross margin was substantially higher, with cost of revenue dropping to a much lower level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.4%
Gross profit
$1.1B
Revenue
$4.0B
Cost of revenue
$2.9B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+5.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $4.0B | $1.1B | $2.9B | 28.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
-0.3 pts
Year-over-year change
Jul 1, 2023
+5.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Year-over-year gross margin expansion was driven by a lower cost of revenue relative to revenue, as cost of revenue declined more than revenue did. The strongest observable margin driver is the reduction in cost of revenue compared with the year-ago period.
Sequentially, gross margin was slightly lower as revenue decreased while gross profit remained essentially unchanged, causing cost of revenue to absorb a slightly larger share. Compared with the same quarter one year earlier, gross margin was substantially higher, with cost of revenue dropping to a much lower level.
Monitor whether cost of revenue can sustain its lower level relative to revenue in future quarters.