GM

GameStop Corp. stock research

Feb 1, 2025

FY2024 Q4

GameStop (GME) Gross Margin — Quarter Ended Feb 1, 2025

In the current quarter, revenue and gross profit increased compared to the preceding quarter but decreased compared to the same quarter last year. The gross margin percentage improved relative to the year-ago period but weakened slightly from the prior quarter.

Gross margin takeaway

Quarter ended Feb 1, 2025 · FY2024 Q4

In the current quarter, revenue and gross profit increased compared to the preceding quarter but decreased compared to the same quarter last year. The gross margin percentage improved relative to the year-ago period but weakened slightly from the prior quarter.

  • The most observable margin driver is the change in the proportion of cost of revenue to revenue. Year over year, this proportion decreased, supporting a higher gross margin; sequentially, it increased, causing a slight decline.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.

Gross margin snapshot

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

Gross margin

28.3%

Gross profit

$363.4M

Revenue

$1.3B

Cost of revenue

$919.2M

Quarter-over-quarter change

-1.6 pts

Year-over-year change

+5.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
May 4, 2024$881.8M$244.5M$637.3M27.7%
Aug 3, 2024$798.3M$248.8M$549.5M31.2%
Nov 2, 2024$860.3M$257.2M$603.1M29.9%
Feb 1, 2025$1.3B$363.4M$919.2M28.3%

Quarterly comparisons

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

Previous-quarter change

Nov 2, 2024

-1.6 pts

Year-over-year change

Feb 3, 2024

+5.0 pts

What the margin says

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

The most observable margin driver is the change in the proportion of cost of revenue to revenue. Year over year, this proportion decreased, supporting a higher gross margin; sequentially, it increased, causing a slight decline.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.

Monitor the proportion of cost of revenue to revenue, as it has moved in opposite directions on a sequential and year-over-year basis.