Switch to:
Christopher & Banks Corp (NYSE:CBK)
Gross Profit
$142.1 Mil (TTM As of Apr. 2015)

Christopher & Banks Corp's gross profit for the three months ended in Apr. 2015 was $32.2 Mil. Christopher & Banks Corp's gross profit for the trailing twelve months (TTM) ended in Apr. 2015 was $142.1 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Christopher & Banks Corp's gross profit for the three months ended in Apr. 2015 was $32.2 Mil. Christopher & Banks Corp's revenue for the three months ended in Apr. 2015 was $91.6 Mil. Therefore, Christopher & Banks Corp's Gross Margin for the quarter that ended in Apr. 2015 was 35.15%.

Christopher & Banks Corp had a gross margin of 35.15% for the quarter that ended in Apr. 2015 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Christopher & Banks Corp was 44.32%. The lowest was 27.65%. And the median was 36.51%.


Definition

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

Christopher & Banks Corp's Gross Profit for the fiscal year that ended in Jan. 2015 is calculated as

Gross Profit (A: Jan. 2015 )=Revenue - Cost of Goods Sold
=418.584 - 270.79
=147.8

Christopher & Banks Corp's Gross Profit for the quarter that ended in Apr. 2015 is calculated as

Gross Profit (Q: Apr. 2015 )=Revenue - Cost of Goods Sold
=91.621 - 59.412
=32.2

Christopher & Banks Corp Gross Profit for the trailing twelve months (TTM) ended in Apr. 2015 was 37.633 (Jul. 2014 ) + 43.737 (Oct. 2014 ) + 28.518 (Jan. 2015 ) + 32.209 (Apr. 2015 ) = $142.1 Mil.

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

Christopher & Banks Corp's Gross Margin for the quarter that ended in Apr. 2015 is calculated as

Gross Margin (Q: Apr. 2015 )=Gross Profit (Q: Apr. 2015 ) / Revenue (Q: Apr. 2015 )
=(Revenue - Cost of Goods Sold) / Revenue
=32.2 / 91.621
=35.15 %

* 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

Christopher & Banks Corp had a gross margin of 35.15% for the quarter that ended in Apr. 2015 => Competition eroding margins


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.

Christopher & Banks Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Jan13Jan14Jan15
Gross_Profit 167.9198.4216.8221.3189.0166.3155.4126.6151.0147.8

Christopher & Banks Corp Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Gross_Profit 35.037.134.945.034.137.937.643.728.532.2
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)

GuruFocus Premium Plus Membership

FEEDBACK