GMENEUTRAL

GME Gross Margin Analysis

40.7%

Higher than 56% of Consumer Cyclical sector peers

Updated 396h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so GME retains $0.407 of every sales dollar at this stage.

Sector Performance

56th percentile

GME

40.7%

Sector Median

34.2%

Sector Avg

27.7%

Prior Period

35.0%(May 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of revenue a company keeps after paying direct production costs, so GME retains $0.407 of every sales dollar at this stage.

At 40.7%, it sits above the Consumer Cyclical sector median of 33.9%, placing GME in the 56th percentile of peers. The trend is not available: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so there is no historical direction to evaluate. The level is moderately better than the typical sector company, but with no trend data, the margin offers no confirmation of improving or deteriorating performance. This mix points to a limited risk profile on the cost side, yet it does not provide a clear opportunity for margin-driven upside. The metric supports the overall NEUTRAL verdict, as a 40.7% gross margin is favorable but not exceptional, and the missing trend prevents any stronger conclusion.

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 34.2%, placing it in the 56th percentile.

Who are GME's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.