Stanley Black & Decker, Inc. stock research
FY2024 Q3
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Sep 28, 2024
Revenue and cost of revenue both decreased compared to the prior quarter, while gross profit held steady, resulting in an improved gross margin. Versus the same quarter one year earlier, lower revenue paired with a sharper decline in cost of revenue drove gross profit up and gross margin higher.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue and cost of revenue both decreased compared to the prior quarter, while gross profit held steady, resulting in an improved gross margin. Versus the same quarter one year earlier, lower revenue paired with a sharper decline in cost of revenue drove gross profit up and gross margin higher.
- Gross profit was stable sequentially despite lower revenue, and it increased year-over-year while revenue fell, indicating a favorable shift in the relationship between cost of revenue and sales.
- Compared with the immediately preceding quarter, gross margin improved as cost of revenue fell more than revenue. Versus the same quarter one year earlier, gross margin strengthened due to a larger reduction in cost of revenue relative to the decline in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.9%
Gross profit
$1.1B
Revenue
$3.8B
Cost of revenue
$2.6B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 28, 2024 | $3.8B | $1.1B | $2.6B | 29.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
+1.5 pts
Year-over-year change
Sep 30, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit was stable sequentially despite lower revenue, and it increased year-over-year while revenue fell, indicating a favorable shift in the relationship between cost of revenue and sales.
Compared with the immediately preceding quarter, gross margin improved as cost of revenue fell more than revenue. Versus the same quarter one year earlier, gross margin strengthened due to a larger reduction in cost of revenue relative to the decline in revenue.
Monitor whether the lower cost of revenue relative to revenue persists, as it has been the main factor behind the gross margin improvement.