Best Buy Co., Inc. stock research
FY2025 Q4
Best Buy (BBY) Gross Margin — Quarter Ended Feb 1, 2025
Revenue and gross profit both decreased compared to the same quarter last year, while cost of revenue also declined. Gross margin improved slightly versus the year-ago quarter but weakened from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Feb 1, 2025 · FY2025 Q4
Revenue and gross profit both decreased compared to the same quarter last year, while cost of revenue also declined. Gross margin improved slightly versus the year-ago quarter but weakened from the immediately preceding quarter.
- Gross margin was higher than the same quarter last year but lower than the prior quarter, indicating a mixed sequential trend. The relationship between revenue and cost of revenue shifted, with cost of revenue declining less proportionally than revenue from the prior quarter.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, yet gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.9%
Gross profit
$2.9B
Revenue
$13.9B
Cost of revenue
$11.0B
Quarter-over-quarter change
-2.6 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 |
|---|---|---|---|---|
| May 4, 2024 | $8.8B | $2.1B | $6.8B | 23.3% |
| Aug 3, 2024 | $9.3B | $2.2B | $7.1B | 23.5% |
| Nov 2, 2024 | $9.4B | $2.2B | $7.2B | 23.5% |
| Feb 1, 2025 | $13.9B | $2.9B | $11.0B | 20.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2024
-2.6 pts
Year-over-year change
Feb 3, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was higher than the same quarter last year but lower than the prior quarter, indicating a mixed sequential trend. The relationship between revenue and cost of revenue shifted, with cost of revenue declining less proportionally than revenue from the prior quarter.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, yet gross margin was lower. Compared to the same quarter one year earlier, revenue was lower, gross profit was lower, and cost of revenue was lower, while gross margin was higher.
Monitor the relationship between revenue and cost of revenue in future quarters, as the sequential decline in gross margin suggests a shift in their relative proportions.