GM

GameStop Corp. stock research

Feb 3, 2024

FY2023 Q4

GameStop (GME) Gross Margin — Quarter Ended Feb 3, 2024

Revenue and gross profit both improved sequentially but declined compared to the same quarter last year. Gross margin weakened from the prior quarter, yet remained higher than the year-ago period, indicating a mixed performance.

Gross margin takeaway

Quarter ended Feb 3, 2024 · FY2023 Q4

Revenue and gross profit both improved sequentially but declined compared to the same quarter last year. Gross margin weakened from the prior quarter, yet remained higher than the year-ago period, indicating a mixed performance.

  • Gross margin improved year over year, marking the strongest observable directional shift among the measured periods.
  • Compared to the previous quarter, gross margin weakened as cost of revenue grew faster than revenue. Relative to the same quarter last year, gross margin strengthened as revenue declined less than cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

23.4%

Gross profit

$419.2M

Revenue

$1.8B

Cost of revenue

$1.4B

Quarter-over-quarter change

-2.8 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 29, 2023$1.2B$287.3M$949.8M23.2%
Jul 29, 2023$1.2B$305.9M$857.9M26.3%
Oct 28, 2023$1.1B$281.8M$796.5M26.1%
Feb 3, 2024$1.8B$419.2M$1.4B23.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Oct 28, 2023

-2.8 pts

Year-over-year change

Jan 28, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin improved year over year, marking the strongest observable directional shift among the measured periods.

Compared to the previous quarter, gross margin weakened as cost of revenue grew faster than revenue. Relative to the same quarter last year, gross margin strengthened as revenue declined less than cost of revenue.

Monitor the relationship between cost of revenue and revenue growth in upcoming quarters, as sequential cost increases outpaced revenue expansion.