Best Buy Co., Inc. stock research
FY2025 Q2
Best Buy (BBY) Gross Margin — Quarter Ended Aug 3, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to a year ago and slightly higher than the prior quarter. Cost of revenue declined in both comparisons, and gross margin improved modestly versus both periods.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2025 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was stable relative to a year ago and slightly higher than the prior quarter. Cost of revenue declined in both comparisons, and gross margin improved modestly versus both periods.
- The gross margin improvement was driven by a proportionally larger decline in cost of revenue relative to the change in revenue, particularly when compared with the prior quarter.
- Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose at a faster rate, leading to a higher gross margin. Versus the same quarter last year, revenue and cost of revenue both decreased, while gross profit remained essentially unchanged, resulting in a slightly improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.5%
Gross profit
$2.2B
Revenue
$9.3B
Cost of revenue
$7.1B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2024 | $9.3B | $2.2B | $7.1B | 23.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
+0.2 pts
Year-over-year change
Jul 29, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a proportionally larger decline in cost of revenue relative to the change in revenue, particularly when compared with the prior quarter.
Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose at a faster rate, leading to a higher gross margin. Versus the same quarter last year, revenue and cost of revenue both decreased, while gross profit remained essentially unchanged, resulting in a slightly improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's margin improvement relied on cost reductions outpacing revenue changes.