Tapestry, Inc. stock research
FY2023 Q4
Tapestry (TPR) Gross Margin — Quarter Ended Jul 1, 2023
Revenue was unchanged from the same quarter last year, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, revenue increased but cost of revenue rose proportionally more, leading to a slightly lower gross margin.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q4
Revenue was unchanged from the same quarter last year, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the prior quarter, revenue increased but cost of revenue rose proportionally more, leading to a slightly lower gross margin.
- The strongest observable driver was the reduction in cost of revenue relative to revenue compared to the same quarter last year, which lifted gross profit and margin. Sequentially, cost of revenue grew faster than revenue, slightly compressing margin.
- Gross margin improved year-over-year from the prior year's level, but weakened slightly from the preceding quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.4%
Gross profit
$1.2B
Revenue
$1.6B
Cost of revenue
$446.8M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+3.5 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% |
| Jul 1, 2023 | $1.6B | $1.2B | $446.8M | 72.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
-0.3 pts
Year-over-year change
Jul 2, 2022
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the reduction in cost of revenue relative to revenue compared to the same quarter last year, which lifted gross profit and margin. Sequentially, cost of revenue grew faster than revenue, slightly compressing margin.
Gross margin improved year-over-year from the prior year's level, but weakened slightly from the preceding quarter.
Monitor the trend in cost of revenue as a proportion of revenue, given its impact on gross margin.