GameStop Corp. stock research
FY2023 Q2
GameStop (GME) Gross Margin — Quarter Ended Jul 29, 2023
For the current quarter, gross profit and gross margin improved compared to both the immediate prior quarter and the same quarter one year earlier. Revenue was stable sequentially but higher year over year, while cost of revenue was lower sequentially but slightly higher year over year.
Gross margin takeaway
Quarter ended Jul 29, 2023 · FY2023 Q2
For the current quarter, gross profit and gross margin improved compared to both the immediate prior quarter and the same quarter one year earlier. Revenue was stable sequentially but higher year over year, while cost of revenue was lower sequentially but slightly higher year over year.
- The most notable factor supporting the margin improvement was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue declined from the prior quarter, and revenue grew more than cost of revenue compared to the year-ago quarter.
- Sequentially, gross margin improved as cost of revenue decreased while revenue remained unchanged. Year over year, gross margin also improved, with revenue increasing and cost of revenue rising only modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.3%
Gross profit
$305.9M
Revenue
$1.2B
Cost of revenue
$857.9M
Quarter-over-quarter change
+3.1 pts
Year-over-year change
+1.4 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% |
| Jul 29, 2023 | $1.2B | $305.9M | $857.9M | 26.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 29, 2023
+3.1 pts
Year-over-year change
Jul 30, 2022
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable factor supporting the margin improvement was the relationship between revenue and cost of revenue: revenue held steady while cost of revenue declined from the prior quarter, and revenue grew more than cost of revenue compared to the year-ago quarter.
Sequentially, gross margin improved as cost of revenue decreased while revenue remained unchanged. Year over year, gross margin also improved, with revenue increasing and cost of revenue rising only modestly.
Monitor the trajectory of cost of revenue relative to revenue in coming quarters.