Barnes & Noble Education, Inc. stock research
FY2024 Q1
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Jul 29, 2023
Revenue increased compared to the prior quarter but decreased from the same quarter last year, while gross profit decreased from both periods. The gross margin declined as cost of revenue grew at a faster pace than revenue relative to both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2024 Q1
Revenue increased compared to the prior quarter but decreased from the same quarter last year, while gross profit decreased from both periods. The gross margin declined as cost of revenue grew at a faster pace than revenue relative to both the prior quarter and the year-ago quarter.
- The primary observable driver of the gross margin change is the relationship between revenue and cost of revenue: cost of revenue increased more than revenue when compared to both the prior quarter and the year-ago quarter, leading to a lower gross margin.
- Compared to the immediately preceding quarter, revenue was higher while gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was lower and gross profit was lower, also leading to a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.1%
Gross profit
$48.2M
Revenue
$252.7M
Cost of revenue
$216.0M
Quarter-over-quarter change
-3.1 pts
Year-over-year change
-2.9 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 |
|---|---|---|---|---|
| Jan 28, 2023 | $438.1M | $97.0M | $341.0M | 22.1% |
| Jul 29, 2023 | $252.7M | $48.2M | $216.0M | 19.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
-3.1 pts
Year-over-year change
Jul 30, 2022
-2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change is the relationship between revenue and cost of revenue: cost of revenue increased more than revenue when compared to both the prior quarter and the year-ago quarter, leading to a lower gross margin.
Compared to the immediately preceding quarter, revenue was higher while gross profit was lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue was lower and gross profit was lower, also leading to a weakened gross margin.
Monitor the company's BNC First Day programs, which offer discounted course materials, as they may influence the revenue and cost structure in future quarters.