Tapestry, Inc. stock research
FY2023 Q3
Tapestry (TPR) Gross Margin — Quarter Ended Apr 1, 2023
Gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue. Revenue declined from the prior quarter but rose from the year-ago period, while cost of revenue decreased in both comparisons.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q3
Gross margin improved compared to both the prior quarter and the same quarter last year, driven by a lower cost of revenue relative to revenue. Revenue declined from the prior quarter but rose from the year-ago period, while cost of revenue decreased in both comparisons.
- The gross margin strengthened as cost of revenue declined more sharply than revenue on a sequential basis and also fell year-over-year while revenue increased.
- Compared with the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.8%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$411.2M
Quarter-over-quarter change
n/a
Year-over-year change
+2.8 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 | $1.5B | $1.1B | $411.2M | 72.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Apr 2, 2022
+2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened as cost of revenue declined more sharply than revenue on a sequential basis and also fell year-over-year while revenue increased.
Compared with the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Monitor whether the cost of revenue can sustain its current level relative to revenue in future quarters.