Best Buy Co., Inc. stock research
FY2024 Q1
Best Buy (BBY) Gross Margin — Quarter Ended Apr 29, 2023
Revenue and gross profit both decreased compared to the immediately preceding quarter and the same quarter one year earlier. The gross margin improved versus the prior quarter but was slightly higher than the year-ago period, reflecting a lower proportion of cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2024 Q1
Revenue and gross profit both decreased compared to the immediately preceding quarter and the same quarter one year earlier. The gross margin improved versus the prior quarter but was slightly higher than the year-ago period, reflecting a lower proportion of cost of revenue relative to revenue.
- The gross margin strengthened sequentially as cost of revenue declined more sharply than revenue, indicating a favorable shift in the relationship between these two metrics.
- Compared to the prior quarter, revenue and gross profit were lower while gross margin improved. Versus the same quarter last year, revenue and gross profit were also lower, but gross margin was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.7%
Gross profit
$2.1B
Revenue
$9.5B
Cost of revenue
$7.3B
Quarter-over-quarter change
+2.8 pts
Year-over-year change
+0.6 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% |
| Apr 29, 2023 | $9.5B | $2.1B | $7.3B | 22.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
+2.8 pts
Year-over-year change
Apr 30, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially as cost of revenue declined more sharply than revenue, indicating a favorable shift in the relationship between these two metrics.
Compared to the prior quarter, revenue and gross profit were lower while gross margin improved. Versus the same quarter last year, revenue and gross profit were also lower, but gross margin was slightly higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the improved margin relationship persists.