GameStop Corp. stock research
FY2023 Q3
GameStop (GME) Gross Margin — Quarter Ended Oct 28, 2023
Revenue decreased compared to the prior quarter while gross profit also declined, leading to a slightly weakened gross margin. Cost of revenue fell in absolute terms as a proportion of revenue, but gross margin remained under pressure relative to both sequential and year-ago periods.
Gross margin takeaway
Quarter ended Oct 28, 2023 · FY2023 Q3
Revenue decreased compared to the prior quarter while gross profit also declined, leading to a slightly weakened gross margin. Cost of revenue fell in absolute terms as a proportion of revenue, but gross margin remained under pressure relative to both sequential and year-ago periods.
- The relationship between revenue and cost of revenue shifted this quarter: revenue declined by a greater absolute amount than cost of revenue, compressing gross profit and margin. The year-ago comparison shows gross margin improvement, driven by a larger relative reduction in cost of revenue versus revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as revenue and gross profit both decreased. Versus the same quarter one year earlier, gross margin improved, with cost of revenue declining more than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.1%
Gross profit
$281.8M
Revenue
$1.1B
Cost of revenue
$796.5M
Quarter-over-quarter change
-0.2 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% |
| Jul 29, 2023 | $1.2B | $305.9M | $857.9M | 26.3% |
| Oct 28, 2023 | $1.1B | $281.8M | $796.5M | 26.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 29, 2023
-0.2 pts
Year-over-year change
Oct 29, 2022
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shifted this quarter: revenue declined by a greater absolute amount than cost of revenue, compressing gross profit and margin. The year-ago comparison shows gross margin improvement, driven by a larger relative reduction in cost of revenue versus revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as revenue and gross profit both decreased. Versus the same quarter one year earlier, gross margin improved, with cost of revenue declining more than revenue.
Monitor the trend in cost of revenue relative to revenue, as its rate of change has diverged between sequential and year-ago comparisons.