Stanley Black & Decker, Inc. stock research
FY2025 Q1
Stanley Black & Decker (SWK) Gross Margin — Quarter Ended Mar 29, 2025
Revenue and cost of revenue both changed, resulting in a gross profit that remained at a similar level to the prior quarter, while gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved as revenue was lower but cost of revenue declined more sharply.
Gross margin takeaway
Quarter ended Mar 29, 2025 · FY2025 Q1
Revenue and cost of revenue both changed, resulting in a gross profit that remained at a similar level to the prior quarter, while gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved as revenue was lower but cost of revenue declined more sharply.
- The improvement in gross margin relative to the prior year was driven by a proportionally larger reduction in cost of revenue compared to revenue.
- Gross margin weakened slightly versus the immediately preceding quarter; revenue, gross profit, and cost of revenue were each at similar rounded levels. Compared to the same quarter one year earlier, gross margin improved, as revenue was lower and cost of revenue was lower, with cost of revenue declining more sharply.
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
$3.7B
Cost of revenue
$2.6B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Jun 29, 2024 | $4.0B | $1.1B | $2.9B | 28.4% |
| Sep 28, 2024 | $3.8B | $1.1B | $2.6B | 29.9% |
| Dec 28, 2024 | $3.7B | $1.1B | $2.6B | 30.8% |
| Mar 29, 2025 | $3.7B | $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
Dec 28, 2024
-0.8 pts
Year-over-year change
Mar 30, 2024
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin relative to the prior year was driven by a proportionally larger reduction in cost of revenue compared to revenue.
Gross margin weakened slightly versus the immediately preceding quarter; revenue, gross profit, and cost of revenue were each at similar rounded levels. Compared to the same quarter one year earlier, gross margin improved, as revenue was lower and cost of revenue was lower, with cost of revenue declining more sharply.
Monitor whether cost of revenue continues to decline at a faster rate than revenue in future periods.