Best Buy Co., Inc. stock research
FY2024 Q3
Best Buy (BBY) Gross Margin — Quarter Ended Oct 28, 2023
Revenue and cost of revenue both increased from the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and cost of revenue were lower, gross profit was slightly lower, and gross margin was higher.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2024 Q3
Revenue and cost of revenue both increased from the prior quarter, while gross profit remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue and cost of revenue were lower, gross profit was slightly lower, and gross margin was higher.
- The gross margin improved compared to the same quarter last year, as the decline in cost of revenue was proportionally larger than the decline in revenue. The strongest observable driver is the relative movement between revenue and cost of revenue.
- Compared to the prior quarter, gross margin weakened slightly as revenue growth was matched by a proportional increase in cost of revenue, leaving gross profit unchanged. Versus the same quarter last year, gross margin improved, with both revenue and cost of revenue lower but cost of revenue declining more sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.9%
Gross profit
$2.2B
Revenue
$9.8B
Cost of revenue
$7.5B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.9 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% |
| Oct 28, 2023 | $9.8B | $2.2B | $7.5B | 22.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
-0.3 pts
Year-over-year change
Oct 29, 2022
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved compared to the same quarter last year, as the decline in cost of revenue was proportionally larger than the decline in revenue. The strongest observable driver is the relative movement between revenue and cost of revenue.
Compared to the prior quarter, gross margin weakened slightly as revenue growth was matched by a proportional increase in cost of revenue, leaving gross profit unchanged. Versus the same quarter last year, gross margin improved, with both revenue and cost of revenue lower but cost of revenue declining more sharply.
Monitor the trajectory of cost of revenue relative to revenue, as its proportional movement directly influences gross margin stability.