GameStop Corp. stock research
FY2023 Q1
GameStop (GME) Gross Margin — Quarter Ended Apr 29, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, as the decline in cost of revenue was proportionally larger than the decline in revenue.
Gross margin takeaway
Quarter ended Apr 29, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Gross margin improved relative to both periods, as the decline in cost of revenue was proportionally larger than the decline in revenue.
- Gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The relationship between revenue and cost of revenue was the primary observable factor.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was lower and gross profit was lower, while gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.2%
Gross profit
$287.3M
Revenue
$1.2B
Cost of revenue
$949.8M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.6 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 | $2.2B | $499.8M | $1.7B | 22.4% |
| Apr 29, 2023 | $1.2B | $287.3M | $949.8M | 23.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 28, 2023
+0.8 pts
Year-over-year change
Apr 30, 2022
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year-over-year, driven by a lower cost of revenue relative to revenue. The relationship between revenue and cost of revenue was the primary observable factor.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was lower and gross profit was lower, while gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the gross margin improvement can be sustained.