Best Buy Co (BSP:BBYY34) Gross Margin %

: 20.49% (As of Jan. 2024)

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Gross Margin % is calculated as gross profit divided by its revenue. Best Buy Co's Gross Profit for the three months ended in Jan. 2024 was R$14,760 Mil. Best Buy Co's Revenue for the three months ended in Jan. 2024 was R$72,032 Mil. Therefore, Best Buy Co's Gross Margin % for the quarter that ended in Jan. 2024 was 20.49%.

Warning Sign:

Best Buy Co Inc gross margin has been in long-term decline. The average rate of decline per year is -1.3%.

The historical rank and industry rank for Best Buy Co's Gross Margin % or its related term are showing as below:

BSP:BBYY34' s Gross Margin % Range Over the Past 10 Years
Min: 21.41 Med: 22.76 Max: 23.96
Current: 22.1

During the past 13 years, the highest Gross Margin % of Best Buy Co was 23.96%. The lowest was 21.41%. And the median was 22.76%.

BSP:BBYY34's Gross Margin % is ranked worse than
77.04% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 36.86 vs BSP:BBYY34: 22.10

Best Buy Co had a gross margin of 20.49% for the quarter that ended in Jan. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Best Buy Co was -1.30% per year.

Best Buy Co Gross Margin % Historical Data

The historical data trend for Best Buy Co's Gross Margin % 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.

* Premium members only.

Best Buy Co Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Gross Margin %

23.03

22.37

22.49

21.41

22.10

Best Buy Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Gross Margin %																19.95	22.71	23.17	22.88	20.49

Competitive Comparison

For the Specialty Retail subindustry, Best Buy Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.

Best Buy Co Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Best Buy Co's Gross Margin % falls into.

Best Buy Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Best Buy Co's Gross Margin for the fiscal year that ended in Jan. 2024 is calculated as

Gross Margin % (A: Jan. 2024 )	=	Gross Profit (A: Jan. 2024 )	/	Revenue (A: Jan. 2024 )
	=	47229.5	/	213705.626
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(213705.626 - 166476.151)	/	213705.626
	=	22.10 %

Best Buy Co's Gross Margin for the quarter that ended in Jan. 2024 is calculated as

Gross Margin % (Q: Jan. 2024 )	=	Gross Profit (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	14759.5	/	72031.957
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(72031.957 - 57272.439)	/	72031.957
	=	20.49 %

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.

Best Buy Co (BSP:BBYY34) Gross Margin % 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

Best Buy Co had a gross margin of 20.49% for the quarter that ended in Jan. 2024 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Best Buy Co Gross Margin % Related Terms

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Best Buy Co (BSP:BBYY34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Best Buy Co Inc (BSP:BBYY34) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

BBY:USA BBY:Mexico BUY:Germany

Address

7601 Penn Avenue South, Richfield, MN, USA, 55423

Website

https://www.investors.bestbuy.com

With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

Best Buy Co (BSP:BBYY34) Headlines

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