Best Buy Co., Inc. stock research
FY2024 Q2
Best Buy (BBY) Gross Margin — Quarter Ended Jul 29, 2023
Revenue and gross profit both improved slightly compared to the prior quarter, while cost of revenue rose at a slower pace, leading to a higher gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue decreased proportionally more, and gross margin strengthened.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2024 Q2
Revenue and gross profit both improved slightly compared to the prior quarter, while cost of revenue rose at a slower pace, leading to a higher gross margin. Versus the same quarter last year, revenue and gross profit were lower, cost of revenue decreased proportionally more, and gross margin strengthened.
- The gross margin increased relative to both the prior quarter and the same period a year ago, driven mainly by a lower cost of revenue as a share of revenue.
- Compared to the prior quarter, revenue was modestly higher, cost of revenue increased slightly less, and gross margin improved. Versus the year-ago quarter, both revenue and cost of revenue declined, but the cost decline was proportionally steeper, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.2%
Gross profit
$2.2B
Revenue
$9.6B
Cost of revenue
$7.4B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+1.0 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% |
| Jul 29, 2023 | $9.6B | $2.2B | $7.4B | 23.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
+0.5 pts
Year-over-year change
Jul 30, 2022
+1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin increased relative to both the prior quarter and the same period a year ago, driven mainly by a lower cost of revenue as a share of revenue.
Compared to the prior quarter, revenue was modestly higher, cost of revenue increased slightly less, and gross margin improved. Versus the year-ago quarter, both revenue and cost of revenue declined, but the cost decline was proportionally steeper, resulting in a higher gross margin.
Monitor whether cost of revenue continues to decline relative to revenue in upcoming quarters.