Best Buy Co., Inc. stock research
FY2023 Q4
Best Buy (BBY) Gross Margin — Quarter Ended Jan 28, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose in proportion. Gross margin weakened slightly versus the same quarter last year and declined from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Jan 28, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose in proportion. Gross margin weakened slightly versus the same quarter last year and declined from the immediately preceding quarter.
- The relationship between revenue and cost of revenue drove the gross margin change; revenue grew while cost of revenue increased at a faster pace relative to the prior quarter, compressing margin.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were lower, while gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.0%
Gross profit
$2.9B
Revenue
$14.7B
Cost of revenue
$11.8B
Quarter-over-quarter change
n/a
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $14.7B | $2.9B | $11.8B | 20.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jan 29, 2022
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change; revenue grew while cost of revenue increased at a faster pace relative to the prior quarter, compressing margin.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were lower, while gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in the current quarter contributed to margin compression.