Dave & Buster’s Entertainment (PLAY)

Gross profit margin

		Jan 31, 2025	Feb 4, 2024	Jan 31, 2024	Jan 31, 2023	Jan 29, 2023
Gross profit	US$ in thousands	1,818,300	1,729,500	723,900	1,655,560	1,566,580
Revenue	US$ in thousands	2,132,700	2,066,500	2,205,300	1,964,430	1,875,440
Gross profit margin		85.26%	83.69%	32.83%	84.28%	83.53%

January 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,818,300K ÷ $2,132,700K
= 85.26%

The gross profit margin of Dave & Buster’s Entertainment demonstrates significant fluctuations over the reported periods. As of January 29, 2023, the gross profit margin stood at 83.53%, reflecting robust profitability in that period. Subsequently, there was a slight increase to 84.28% by January 31, 2023, indicating further improvement in the company's ability to generate profit from its core operations.

However, a substantial decline in the gross profit margin was observed by January 31, 2024, which dropped to 32.83%. This sharp decrease may raise concerns about the company's cost management or pricing strategies during that period. Notably, there was a notable recovery by February 4, 2024, with the gross profit margin rebounding to 83.69%, indicating a potential corrective action or enhanced performance in generating profits.

By January 31, 2025, the gross profit margin reached 85.26%, surpassing the levels seen in the previous periods. This strong performance suggests that Dave & Buster’s Entertainment may have implemented measures to boost profitability or effectively manage costs during that time frame.

Overall, the fluctuating nature of Dave & Buster’s Entertainment's gross profit margin underscores the importance of closely monitoring and assessing key financial ratios to understand the company's financial health and operational efficiency.