Switch to:
GuruFocus has detected 1 Warning Sign with Christopher & Banks Corp $CBK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Christopher & Banks Corp (NYSE:CBK)
Gross Profit
$128.1 Mil (TTM As of Jan. 2017)

Christopher & Banks Corp's gross profit for the three months ended in Jan. 2017 was $21.0 Mil. Christopher & Banks Corp's gross profit for the trailing twelve months (TTM) ended in Jan. 2017 was $128.1 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Christopher & Banks Corp's gross profit for the three months ended in Jan. 2017 was $21.0 Mil. Christopher & Banks Corp's revenue for the three months ended in Jan. 2017 was $85.0 Mil. Therefore, Christopher & Banks Corp's Gross Margin for the quarter that ended in Jan. 2017 was 24.76%.

Christopher & Banks Corp had a gross margin of 24.76% for the quarter that ended in Jan. 2017 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Christopher & Banks Corp was 38.44%. The lowest was 29.43%. And the median was 34.68%.


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. 2017 is calculated as

Gross Profit (A: Jan. 2017 )=Revenue - Cost of Goods Sold
=381.605 - 253.483
=128.1

Christopher & Banks Corp's Gross Profit for the quarter that ended in Jan. 2017 is calculated as

Gross Profit (Q: Jan. 2017 )=Revenue - Cost of Goods Sold
=84.98 - 63.94
=21.0

Christopher & Banks Corp Gross Profit for the trailing twelve months (TTM) ended in Jan. 2017 was 37.712 (Apr. 2016 ) + 30.149 (Jul. 2016 ) + 39.221 (Oct. 2016 ) + 21.04 (Jan. 2017 ) = $128.1 Mil.

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

Christopher & Banks Corp's Gross Margin for the quarter that ended in Jan. 2017 is calculated as

Gross Margin (Q: Jan. 2017 )=Gross Profit (Q: Jan. 2017 ) / Revenue (Q: Jan. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=21.0 / 84.98
=24.76 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 24.76% for the quarter that ended in Jan. 2017 => 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 local exchange's currency.

Christopher & Banks Corp Annual Data

Feb08Feb09Feb10Feb11Jan12Jan13Jan14Jan15Jan16Jan17
Gross_Profit 221.3189.0166.3155.40.0126.6151.0147.8129.5128.1

Christopher & Banks Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Gross_Profit 43.728.532.230.937.129.237.730.139.221.0
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