Best Buy Co., Inc. stock research
FY2025 Q1
Best Buy (BBY) Gross Margin — Quarter Ended May 4, 2024
Revenue and cost of revenue were lower than both the immediately preceding quarter and the same quarter one year earlier, while gross margin was higher. Gross profit decreased in absolute terms, but the decline in cost of revenue outpaced the decline in revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2025 Q1
Revenue and cost of revenue were lower than both the immediately preceding quarter and the same quarter one year earlier, while gross margin was higher. Gross profit decreased in absolute terms, but the decline in cost of revenue outpaced the decline in revenue, resulting in an improved gross margin.
- The gross margin improved sequentially and year-over-year, with cost of revenue declining more sharply than revenue in both comparisons.
- Compared with the prior quarter, revenue was substantially lower, reflecting the seasonal nature of the business, while gross margin was higher. Versus the same quarter last year, revenue was slightly lower and gross margin was modestly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.3%
Gross profit
$2.1B
Revenue
$8.8B
Cost of revenue
$6.8B
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 |
|---|---|---|---|---|
| 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% |
| May 4, 2024 | $8.8B | $2.1B | $6.8B | 23.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2024
+2.8 pts
Year-over-year change
Apr 29, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, with cost of revenue declining more sharply than revenue in both comparisons.
Compared with the prior quarter, revenue was substantially lower, reflecting the seasonal nature of the business, while gross margin was higher. Versus the same quarter last year, revenue was slightly lower and gross margin was modestly higher.
Monitor comparable sales trends, as management uses this metric to evaluate performance and it is discussed in the filing.