Korn Ferry (KFY)
Gross profit margin
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 717,987 | 618,492 | 2,596,910 | 2,512,320 | 1,738,020 |
| Revenue | US$ in thousands | 2,761,090 | 2,795,500 | 2,863,840 | 2,643,460 | 1,819,950 |
| Gross profit margin | 26.00% | 22.12% | 90.68% | 95.04% | 95.50% |
April 30, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $717,987K ÷ $2,761,090K
= 26.00%
The analysis of Korn Ferry’s gross profit margin over the specified period reveals notable fluctuations. As of April 30, 2021, the gross profit margin stood at 95.50%, indicating a highly profitable core operation relative to revenue. In the following year, this margin experienced a marginal decline to 95.04% as of April 30, 2022, maintaining a strong profitability profile with minor variation.
By April 30, 2023, the gross profit margin decreased more significantly to 90.68%, reflecting a decline of approximately 4.36 percentage points over the year. While still indicating substantial profitability, this downward trend may suggest increasing cost pressures, changes in revenue mix, or pricing dynamics that have begun to impact gross profitability.
A pronounced shift is observed in subsequent years. By April 30, 2024, the gross profit margin dramatically declined to 22.12%. This substantial reduction indicates a significant deterioration in core profitability, potentially attributable to extraordinary factors such as increased costs, restructuring, extraordinary expenses, or changes in business operations. The margin remains low at 26.00% as of April 30, 2025, showing some improvement compared to the previous year but still indicating a markedly reduced gross profit efficiency relative to earlier years.
Overall, the trend highlights a sharp decline in gross profit margin commencing after the fiscal year ending April 30, 2023. The drastic decrease observed in 2024 signifies a critical shift in the company's gross profitability dynamic, warranting further investigation into underlying causes such as operational challenges, cost structure changes, or external market factors impacting gross margins. The partial recovery in 2025 suggests some stabilization, yet the margin levels remain significantly below historical levels, pointing to persistent challenges in maintaining prior profitability standards.
Peer comparison
Apr 30, 2025