GameStop's gross profit for the
three
months ended in Jan. 2024 was $419 Mil. GameStop's gross profit for the trailing twelve months (TTM) ended in Jan. 2024 was $1,294 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. GameStop's gross profit for the
three
months ended in Jan. 2024 was $419 Mil. GameStop's Revenue for the
three
months ended in Jan. 2024 was $1,794 Mil. Therefore, GameStop's Gross Margin % for the quarter that ended in Jan. 2024 was 23.37%.
GameStop had a gross margin of 23.37% for the quarter that ended in Jan. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of GameStop was 31.39%. The lowest was 22.42%. And the median was 28.47%.
Warning Sign:
GameStop Corp gross margin has been in long-term decline. The average rate of decline per year is -4.1%.
GameStop Gross Profit Historical Data
The historical data trend for GameStop's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Retail subindustry, GameStop's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
GameStop's Gross Profit Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, GameStop's Gross Profit distribution charts can be found below:
* The bar in red indicates where GameStop's Gross Profit falls into.
GameStop Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
GameStop's Gross Profit for the fiscal year that ended in Jan. 2024 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,294 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
GameStop (NYSE:GME) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
GameStop had a gross margin of 23.37% for the quarter that ended in Jan. 2024 => Competition eroding margins
GameStop Gross Profit Related Terms
Thank you for viewing the detailed overview of GameStop's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
GameStop Corp is a U.S. multichannel video game, consumer electronics, and services retailer. The company operates across Europe, Canada, Australia, and the United States. GameStop sells new and second-hand video game hardware, physical and digital video game software, and video game accessories, mainly through GameStop, EB Games, and Micromania stores and international e-commerce sites, including www.gamestop.com, www.ebgames.com.au, and www.micromania.fr. The company has two main business segments: Video game brands and Technology brands. The technology brands segment sells wireless products and services and operates Spring Mobile managed AT&T and Cricket Wireless branded stores, along with the Simply Mac business.
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