Barnes & Noble Education, Inc. stock research
FY2024 Q3
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Jan 27, 2024
Revenue, cost of revenue, and gross profit all decreased compared to the prior quarter, while gross profit decreased less than revenue, leading to a slightly lower gross margin. Year over year, revenue was lower, but gross profit improved and gross margin strengthened as cost of revenue declined more than revenue.
Gross margin takeaway
Quarter ended Jan 27, 2024 · FY2024 Q3
Revenue, cost of revenue, and gross profit all decreased compared to the prior quarter, while gross profit decreased less than revenue, leading to a slightly lower gross margin. Year over year, revenue was lower, but gross profit improved and gross margin strengthened as cost of revenue declined more than revenue.
- The gross margin improved year over year, driven by a more favorable relationship between cost of revenue and revenue. The filing highlights the company's First Day Complete and First Day inclusive access programs as course material delivery models.
- Compared to the immediately preceding quarter, the gross margin weakened slightly. Compared to the same quarter one year earlier, the gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.2%
Gross profit
$100.6M
Revenue
$415.4M
Cost of revenue
$356.1M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+2.1 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% |
| Jan 27, 2024 | $415.4M | $100.6M | $356.1M | 24.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-0.5 pts
Year-over-year change
Jan 28, 2023
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year over year, driven by a more favorable relationship between cost of revenue and revenue. The filing highlights the company's First Day Complete and First Day inclusive access programs as course material delivery models.
Compared to the immediately preceding quarter, the gross margin weakened slightly. Compared to the same quarter one year earlier, the gross margin improved.
Monitor trends in cost of revenue relative to revenue, as the year-over-year improvement in gross margin was driven by a proportionally larger decline in cost of revenue.