Tapestry, Inc. stock research
FY2024 Q3
Tapestry (TPR) Gross Margin — Quarter Ended Mar 30, 2024
Revenue remained stable compared to the same quarter last year, while gross profit was also stable. Gross margin improved compared to both the prior quarter and the year-ago quarter, as cost of revenue decreased relative to revenue.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q3
Revenue remained stable compared to the same quarter last year, while gross profit was also stable. Gross margin improved compared to both the prior quarter and the year-ago quarter, as cost of revenue decreased relative to revenue.
- The gross margin improvement is the most notable change, with cost of revenue declining more sharply than revenue when comparing to the prior quarter.
- Compared to the immediately preceding quarter, revenue decreased while gross margin increased. Compared to the same quarter one year earlier, revenue was unchanged, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.7%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$375.0M
Quarter-over-quarter change
+3.1 pts
Year-over-year change
+1.9 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 |
|---|---|---|---|---|
| Jul 1, 2023 | $1.6B | $1.2B | $446.8M | 72.4% |
| Sep 30, 2023 | $1.5B | $1.1B | $415.5M | 72.5% |
| Dec 30, 2023 | $2.1B | $1.5B | $591.3M | 71.6% |
| Mar 30, 2024 | $1.5B | $1.1B | $375.0M | 74.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+3.1 pts
Year-over-year change
Apr 1, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement is the most notable change, with cost of revenue declining more sharply than revenue when comparing to the prior quarter.
Compared to the immediately preceding quarter, revenue decreased while gross margin increased. Compared to the same quarter one year earlier, revenue was unchanged, but gross margin was higher.
Monitor the trajectory of cost of revenue as a proportion of revenue, given its impact on gross margin.