BN

Barnes & Noble Education, Inc. stock research

Jan 28, 2023

FY2023 Q3

Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Jan 28, 2023

Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago quarter.

Gross margin takeaway

Quarter ended Jan 28, 2023 · FY2023 Q3

Revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin weakened slightly from the prior quarter but improved relative to the year-ago quarter.

  • The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, cost of revenue declined proportionally less than revenue compared to the prior quarter, resulting in a slightly lower gross margin.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

22.1%

Gross profit

$97.0M

Revenue

$438.1M

Cost of revenue

$341.0M

Quarter-over-quarter change

n/a

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.

PeriodRevenueGross profitCost of revenueGross margin
Jan 28, 2023$438.1M$97.0M$341.0M22.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Jan 29, 2022

+0.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The relationship between revenue and cost of revenue drove the gross margin change. In the current quarter, cost of revenue declined proportionally less than revenue compared to the prior quarter, resulting in a slightly lower gross margin.

Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved.

Monitor the trend in cost of revenue relative to revenue, as its proportional movement directly affects gross margin stability.