BBYNEUTRAL

Gross Margin

23.5%

Higher than 31% of Consumer Cyclical sector peers

Updated 217h ago

Sector Performance

31th percentile

BBY

23.5%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Best Buy’s gross margin of 23.5% means that for every dollar of sales, the company keeps about 23.5 cents after paying the direct costs of the products it sells, before other expenses.

This is well below the sector median of 36.3%, placing Best Buy at the 31st percentile among its Consumer Cyclical peers—meaning roughly 7 out of 10 competitors have a higher gross margin. Because the year-over-year and quarter-over-quarter changes are both listed as N/A, there is no trend data to assess whether the margin is improving or deteriorating. The combination of a below-median level and an absent trend offers no clear signal either way, making it difficult to identify a specific risk or opportunity based solely on this metric. This ambiguous picture supports the overall NEUTRAL verdict, as the metric neither stands out as a source of concern nor as a competitive advantage.

Frequently Asked Questions

What does the Gross Margin tell investors about BBY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BBY's Gross Margin compare to its sector?

BBY's Gross Margin of 23.5% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 31th percentile.

Who are BBY's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BABA (34.5%), ROST (29.6%), BROS (23.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.