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Gross margin expanded due to lower freight costs and a shift in sales mix to higher margin soft goods.
Gross margin expansion was the result of lower product costs, increased efficiency across our provider base, a move to longer duration subscriptions and improved efficiency from a migration toward affiliated pharmacies.
Gross margin for Q2 is expected to be between 50% and 51%.
Gross margin for the fourth quarter of 2022 was 67.3% compared to 68.8% in the fourth quarter of 2021.
Gross margin for the fourth quarter was 45%, up slightly from Q3.
Gross margin for the quarter was 33.6% compared to 32.9% for the first quarter of last year.
Gross margin has risen in the past few years, and I believe incremental growth drivers such as AWS and advertising will push margins even higher.
Gross margin is also expected to gradually improve.
Gross margin is expected to improve year over year due to the inflection in 2H23 brought on by SKIN's international rollout of the next-generation Syndeo system.
Gross margin rate decreased by 360 basis points to 33.5% from 37.0% in the prior year, of which 145 basis points was due to negative comparable sales growth in the first half of fiscal 2023.
Gross margin results partly reflect strategic pricing on customer platform wins during a period of inflationary costs.
Gross margin was 10.2% for the fourth quarter of 2022 compared to 26.6% for the fourth quarter of 2021.
Gross margin was up at 61% compared to 49% for the first half of 2022, and that reflects a combination of increase in revenue and also an evolving mix, and maintaining industry-leading sector margins.