Best Buy Co., Inc. stock research
FY2024 Q4
Best Buy (BBY) Gross Margin — Quarter Ended Feb 3, 2024
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit rose and gross margin weakened. Versus the same quarter a year ago, revenue was slightly lower, cost of revenue decreased, gross profit improved marginally, and gross margin strengthened.
Gross margin takeaway
Quarter ended Feb 3, 2024 · FY2024 Q4
Revenue and cost of revenue both increased compared to the prior quarter, while gross profit rose and gross margin weakened. Versus the same quarter a year ago, revenue was slightly lower, cost of revenue decreased, gross profit improved marginally, and gross margin strengthened.
- Gross margin declined from the prior quarter but improved from the same quarter a year ago, indicating the relationship among revenue, cost of revenue, and gross profit changed directionally between the two comparisons.
- Compared to the immediately preceding quarter, gross margin weakened, primarily driven by a proportionally larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin improved as cost of revenue decreased more than revenue declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.5%
Gross profit
$3.0B
Revenue
$14.6B
Cost of revenue
$11.6B
Quarter-over-quarter change
-2.4 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Feb 3, 2024 | $14.6B | $3.0B | $11.6B | 20.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-2.4 pts
Year-over-year change
Jan 28, 2023
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined from the prior quarter but improved from the same quarter a year ago, indicating the relationship among revenue, cost of revenue, and gross profit changed directionally between the two comparisons.
Compared to the immediately preceding quarter, gross margin weakened, primarily driven by a proportionally larger increase in cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin improved as cost of revenue decreased more than revenue declined.
Monitor whether cost of revenue continues to increase at a rate disproportionate to revenue in upcoming quarters.