GMENEUTRAL

Gross Margin

40.7%

Higher than 53% of Consumer Cyclical sector peers

Updated 94h ago

Sector Performance

53th percentile

GME

40.7%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after paying the direct costs of producing its goods—here, GameStop keeps 40.7 cents of every dollar after covering product costs.

That figure sits above the consumer cyclical sector median of 36.3%, placing GameStop in the 53rd percentile among its peers. The year-over-year change and the eight-quarter trend are both marked N/A, but the quarter-over-quarter change shows a gain of +16.3% (from 35.0% to 40.7% based on the two available historical values). Although the upward quarterly move is encouraging, the lack of a full-year comparison and limited historical data make it difficult to assess the sustainability of the improvement. The current margin is slightly above the sector median and the near-term trend is positive, which reduces immediate margin risk but does not signal a decisive competitive advantage. This mixed picture is consistent with the overall NEUTRAL verdict on the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about GME?

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 GME's Gross Margin compare to its sector?

GME's Gross Margin of 40.7% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 53th percentile.

Who are GME's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), 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.