TP

Tapestry, Inc. stock research

Jun 29, 2024

FY2024 Q4

Tapestry (TPR) Gross Margin — Quarter Ended Jun 29, 2024

Revenue and gross profit were broadly stable compared to the prior quarter and the same quarter last year. Cost of revenue decreased versus last year, which contributed to a stronger gross margin.

Gross margin takeaway

Quarter ended Jun 29, 2024 · FY2024 Q4

Revenue and gross profit were broadly stable compared to the prior quarter and the same quarter last year. Cost of revenue decreased versus last year, which contributed to a stronger gross margin.

  • Gross margin improved year over year, supported by a lower cost of revenue relative to revenue. The margin was also slightly higher than the immediately preceding quarter.
  • Compared to the prior quarter, revenue and gross profit were slightly higher while gross margin showed a minor improvement. Versus the same quarter last year, revenue was comparable, gross profit was comparable, and gross margin was higher due to a lower cost of revenue.

Gross margin snapshot

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

Gross margin

74.9%

Gross profit

$1.2B

Revenue

$1.6B

Cost of revenue

$399.9M

Quarter-over-quarter change

+0.2 pts

Year-over-year change

+2.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$1.5B$1.1B$415.5M72.5%
Dec 30, 2023$2.1B$1.5B$591.3M71.6%
Mar 30, 2024$1.5B$1.1B$375.0M74.7%
Jun 29, 2024$1.6B$1.2B$399.9M74.9%

Quarterly comparisons

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

Previous-quarter change

Mar 30, 2024

+0.2 pts

Year-over-year change

Jul 1, 2023

+2.5 pts

What the margin says

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

Gross margin improved year over year, supported by a lower cost of revenue relative to revenue. The margin was also slightly higher than the immediately preceding quarter.

Compared to the prior quarter, revenue and gross profit were slightly higher while gross margin showed a minor improvement. Versus the same quarter last year, revenue was comparable, gross profit was comparable, and gross margin was higher due to a lower cost of revenue.

Monitor the trajectory of cost of revenue, as its year-over-year decline was the key factor behind gross margin expansion.