Barnes & Noble Education, Inc. stock research
FY2025 Q3
Barnes & Noble Education (BNED) Gross Margin — Quarter Ended Jan 25, 2025
Revenue for the quarter was lower than the immediately preceding quarter but roughly in line with the same quarter one year earlier. Gross profit and gross margin both declined sequentially and also weakened compared to the year-ago period, as cost of revenue decreased at a slower rate than revenue.
Gross margin takeaway
Quarter ended Jan 25, 2025 · FY2025 Q3
Revenue for the quarter was lower than the immediately preceding quarter but roughly in line with the same quarter one year earlier. Gross profit and gross margin both declined sequentially and also weakened compared to the year-ago period, as cost of revenue decreased at a slower rate than revenue.
- Gross margin weakened sequentially and year-over-year, driven by a proportionally smaller decline in cost of revenue relative to the decline in revenue. The period-over-period changes in cost of revenue were the most significant factor in the margin movement.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Relative to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.3%
Gross profit
$93.8M
Revenue
$419.7M
Cost of revenue
$369.1M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-1.9 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 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% |
| Jan 25, 2025 | $419.7M | $93.8M | $369.1M | 22.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 26, 2024
-0.6 pts
Year-over-year change
Jan 27, 2024
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially and year-over-year, driven by a proportionally smaller decline in cost of revenue relative to the decline in revenue. The period-over-period changes in cost of revenue were the most significant factor in the margin movement.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower. Relative to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline was the primary observable factor in the margin compression.