Switch to:
Abercrombie & Fitch Co (NYSE:ANF)
Gross Profit
$2,172 Mil (TTM As of Apr. 2016)

Abercrombie & Fitch Co's gross profit for the three months ended in Apr. 2016 was $426 Mil. Abercrombie & Fitch Co's gross profit for the trailing twelve months (TTM) ended in Apr. 2016 was $2,172 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Abercrombie & Fitch Co's gross profit for the three months ended in Apr. 2016 was $426 Mil. Abercrombie & Fitch Co's revenue for the three months ended in Apr. 2016 was $685 Mil. Therefore, Abercrombie & Fitch Co's Gross Margin for the quarter that ended in Apr. 2016 was 62.11%.

Abercrombie & Fitch Co had a gross margin of 62.11% for the quarter that ended in Apr. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Abercrombie & Fitch Co was 66.97%. The lowest was 61.32%. And the median was 63.25%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Abercrombie & Fitch Co's Gross Profit for the fiscal year that ended in Jan. 2016 is calculated as

Gross Profit (A: Jan. 2016 )=Revenue - Cost of Goods Sold
=3518.68 - 1361.137
=2,158

Abercrombie & Fitch Co's Gross Profit for the quarter that ended in Apr. 2016 is calculated as

Gross Profit (Q: Apr. 2016 )=Revenue - Cost of Goods Sold
=685.483 - 259.762
=426

Abercrombie & Fitch Co Gross Profit for the trailing twelve months (TTM) ended in Apr. 2016 was 509.862 (Jul. 2015 ) + 559.787 (Oct. 2015 ) + 676.345 (Jan. 2016 ) + 425.721 (Apr. 2016 ) = $2,172 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Abercrombie & Fitch Co's Gross Margin for the quarter that ended in Apr. 2016 is calculated as

Gross Margin (Q: Apr. 2016 )=Gross Profit (Q: Apr. 2016 ) / Revenue (Q: Apr. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=426 / 685.483
=62.11 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Abercrombie & Fitch Co had a gross margin of 62.11% for the quarter that ended in Apr. 2016 => Durable competitive advantage


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Abercrombie & Fitch Co Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 2,2092,5112,3311,8842,2172,5502,8172,5752,3142,158

Abercrombie & Fitch Co Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
Gross_Profit 767512553567682412510560676426
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK