Barnes & Noble Education, Inc. stock research
FY2024 Q2
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Oct 28, 2023
Revenue was higher than the prior quarter but lower than the same quarter a year ago. Gross profit increased compared to both periods, while cost of revenue rose relative to the prior quarter and decreased slightly year over year; the resulting gross margin improved from both the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2024 Q2
Revenue was higher than the prior quarter but lower than the same quarter a year ago. Gross profit increased compared to both periods, while cost of revenue rose relative to the prior quarter and decreased slightly year over year; the resulting gross margin improved from both the preceding quarter and the same quarter last year.
- The strongest observable margin driver is the increase in gross profit relative to revenue, leading to a higher gross margin. The relationship indicates that cost of revenue grew more slowly than revenue compared to the prior quarter, though the exact causes are not specified in the filing.
- Compared to the immediately preceding quarter, both revenue and gross profit were higher, and cost of revenue increased at a slower pace, resulting in an improved gross margin. Against the same quarter one year earlier, revenue was lower but gross profit improved, and cost of revenue decreased slightly, leading to a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.7%
Gross profit
$140.7M
Revenue
$569.7M
Cost of revenue
$469.7M
Quarter-over-quarter change
+5.6 pts
Year-over-year change
+2.0 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% |
| Oct 28, 2023 | $569.7M | $140.7M | $469.7M | 24.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
+5.6 pts
Year-over-year change
Oct 29, 2022
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to revenue, leading to a higher gross margin. The relationship indicates that cost of revenue grew more slowly than revenue compared to the prior quarter, though the exact causes are not specified in the filing.
Compared to the immediately preceding quarter, both revenue and gross profit were higher, and cost of revenue increased at a slower pace, resulting in an improved gross margin. Against the same quarter one year earlier, revenue was lower but gross profit improved, and cost of revenue decreased slightly, leading to a higher gross margin.
Monitor the trajectory of revenue relative to cost of revenue in subsequent quarters, as the current improvement in gross margin may depend on continued alignment of these two metrics.