GameStop Corp. stock research
FY2024 Q1
GameStop (GME) Gross Margin — Quarter Ended May 4, 2024
In the current quarter, revenue decreased compared to both the preceding quarter and the same quarter one year earlier. However, gross profit decreased less proportionally, leading to an improved gross margin.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2024 Q1
In the current quarter, revenue decreased compared to both the preceding quarter and the same quarter one year earlier. However, gross profit decreased less proportionally, leading to an improved gross margin.
- The strongest observable relationship is that cost of revenue declined more sharply than revenue, resulting in a higher proportion of revenue flowing to gross profit and an improved gross margin.
- Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.7%
Gross profit
$244.5M
Revenue
$881.8M
Cost of revenue
$637.3M
Quarter-over-quarter change
+4.4 pts
Year-over-year change
+4.5 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 |
|---|---|---|---|---|
| Jul 29, 2023 | $1.2B | $305.9M | $857.9M | 26.3% |
| Oct 28, 2023 | $1.1B | $281.8M | $796.5M | 26.1% |
| Feb 3, 2024 | $1.8B | $419.2M | $1.4B | 23.4% |
| May 4, 2024 | $881.8M | $244.5M | $637.3M | 27.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2024
+4.4 pts
Year-over-year change
Apr 29, 2023
+4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable relationship is that cost of revenue declined more sharply than revenue, resulting in a higher proportion of revenue flowing to gross profit and an improved gross margin.
Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Monitor the trend in cash and marketable securities, which decreased from both prior periods as noted in the liquidity discussion.