Barnes & Noble Education, Inc. stock research
FY2025 Q2
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Oct 26, 2024
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross margin improving. Compared to the same quarter last year, revenue and gross profit were lower while cost of revenue was slightly higher, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Oct 26, 2024 · FY2025 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross margin improving. Compared to the same quarter last year, revenue and gross profit were lower while cost of revenue was slightly higher, resulting in a lower gross margin.
- The gross margin strengthened sequentially as revenue grew at a faster pace than cost of revenue, but declined year over year as revenue fell while cost of revenue remained relatively stable.
- Compared to the prior quarter, revenue increased substantially, leading to a higher gross margin. Year over year, revenue decreased slightly, and gross margin also decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.0%
Gross profit
$128.5M
Revenue
$559.7M
Cost of revenue
$473.6M
Quarter-over-quarter change
+5.0 pts
Year-over-year change
-1.7 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 |
|---|---|---|---|---|
| Oct 28, 2023 | $569.7M | $140.7M | $469.7M | 24.7% |
| Jan 27, 2024 | $415.4M | $100.6M | $356.1M | 24.2% |
| Jul 27, 2024 | $250.9M | $45.0M | $218.4M | 17.9% |
| Oct 26, 2024 | $559.7M | $128.5M | $473.6M | 23.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 27, 2024
+5.0 pts
Year-over-year change
Oct 28, 2023
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially as revenue grew at a faster pace than cost of revenue, but declined year over year as revenue fell while cost of revenue remained relatively stable.
Compared to the prior quarter, revenue increased substantially, leading to a higher gross margin. Year over year, revenue decreased slightly, and gross margin also decreased.
Monitor the relationship between cost of revenue and revenue to assess margin sustainability.