GameStop Corp (GME)
Gross profit margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,294,200 | 1,372,100 | 1,347,800 | 1,259,500 | 1,908,700 |
| Revenue | US$ in thousands | 5,272,800 | 5,927,200 | 6,010,700 | 5,089,800 | 6,466,000 |
| Gross profit margin | 24.54% | 23.15% | 22.42% | 24.75% | 29.52% |
February 3, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,294,200K ÷ $5,272,800K
= 24.54%
GameStop Corp's gross profit margin has shown some fluctuations over the past five years. The margin has ranged from 22.42% to 29.52%, with the latest reported figure being 24.54% as of February 3, 2024. This indicates that for every dollar of sales, GameStop is generating a gross profit of approximately 24.54 cents.
The slight increase in the most recent gross profit margin compared to the prior year suggests a potential improvement in the company's ability to manage the cost of goods sold. However, it is worth noting that the margin is still below the highest level recorded in 2020.
Analyzing the trend in the gross profit margin can help stakeholders understand GameStop's efficiency in producing goods and managing production costs. It may also provide insights into the company's pricing strategy, cost control measures, and overall operational performance.