GameStop Corp. stock research
FY2024 Q2
GameStop (GME) Gross Margin — Quarter Ended Aug 3, 2024
Revenue decreased while cost of revenue declined more, resulting in a higher gross profit and an improved gross margin. Compared with the prior quarter, gross margin strengthened; compared with the same quarter last year, gross margin also improved.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2024 Q2
Revenue decreased while cost of revenue declined more, resulting in a higher gross profit and an improved gross margin. Compared with the prior quarter, gross margin strengthened; compared with the same quarter last year, gross margin also improved.
- The gross margin improvement is primarily attributable to the cost of revenue declining at a faster rate than revenue, which lifted the margin in both sequential and year-over-year comparisons.
- Current gross margin is higher than both the prior quarter and the same quarter a year ago, reflecting a favorable cost structure relative to revenue. However, absolute revenue and gross profit are lower than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.2%
Gross profit
$248.8M
Revenue
$798.3M
Cost of revenue
$549.5M
Quarter-over-quarter change
+3.4 pts
Year-over-year change
+4.9 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2024 | $798.3M | $248.8M | $549.5M | 31.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
+3.4 pts
Year-over-year change
Jul 29, 2023
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement is primarily attributable to the cost of revenue declining at a faster rate than revenue, which lifted the margin in both sequential and year-over-year comparisons.
Current gross margin is higher than both the prior quarter and the same quarter a year ago, reflecting a favorable cost structure relative to revenue. However, absolute revenue and gross profit are lower than the year-ago level.
Monitor revenue trends because a prolonged decline could erode the cost-led margin gains observed this quarter.