TP

Tapestry, Inc. stock research

Dec 30, 2023

FY2024 Q2

Tapestry (TPR) Gross Margin — Quarter Ended Dec 30, 2023

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved year-over-year but weakened slightly from the prior quarter.

Gross margin takeaway

Quarter ended Dec 30, 2023 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved year-over-year but weakened slightly from the prior quarter.

  • Year-over-year, revenue was higher and cost of revenue was lower, resulting in a higher gross margin. Sequentially, revenue and cost of revenue were both higher, with gross margin slightly lower.
  • Gross margin was lower than the prior quarter and higher than the same quarter last year.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

71.6%

Gross profit

$1.5B

Revenue

$2.1B

Cost of revenue

$591.3M

Quarter-over-quarter change

-0.9 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.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$1.5B$1.1B$411.2M72.8%
Jul 1, 2023$1.6B$1.2B$446.8M72.4%
Sep 30, 2023$1.5B$1.1B$415.5M72.5%
Dec 30, 2023$2.1B$1.5B$591.3M71.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

-0.9 pts

Year-over-year change

Dec 31, 2022

+3.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Year-over-year, revenue was higher and cost of revenue was lower, resulting in a higher gross margin. Sequentially, revenue and cost of revenue were both higher, with gross margin slightly lower.

Gross margin was lower than the prior quarter and higher than the same quarter last year.

Monitor the relationship between revenue growth and cost of revenue growth in upcoming quarters.