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Christopher & Banks Corp (NYSE:CBK)
Gross Profit
$151.9 Mil (TTM As of Apr. 2014)

Christopher & Banks Corp's gross profit for the three months ended in Apr. 2014 was $37.9 Mil. Christopher & Banks Corp's gross profit for the trailing twelve months (TTM) ended in Apr. 2014 was $151.9 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. 2014 was $37.9 Mil. Christopher & Banks Corp's revenue for the three months ended in Apr. 2014 was $103.4 Mil. Therefore, Christopher & Banks Corp's Gross Margin for the quarter that ended in Apr. 2014 was 36.67%.

Christopher & Banks Corp had a gross margin of 36.67% for the quarter that ended in Apr. 2014 => 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%.

Warning Sign:

Christopher & Banks Corp gross margin has been in long term decline. The average rate of decline per year is -3.2%.


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. 2014 is calculated as

Gross Profit (A: Jan. 2014 )=Revenue - Cost of Goods Sold
=435.754 - 284.723
=151.0

Christopher & Banks Corp's Gross Profit for the quarter that ended in Apr. 2014 is calculated as

Gross Profit (Q: Apr. 2014 )=Revenue - Cost of Goods Sold
=103.366 - 65.461
=37.9

Christopher & Banks Corp Gross Profit for the trailing twelve months (TTM) ended in Apr. 2014 was 34.904 (Jul. 2013 ) + 44.951 (Oct. 2013 ) + 34.093 (Jan. 2014 ) + 37.905 (Apr. 2014 ) = $151.9 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. 2014 is calculated as

Gross Margin (Q: Apr. 2014 )=Gross Profit (Q: Apr. 2014 ) / Revenue (Q: Apr. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=37.9 / 103.366
=36.67 %

* 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 36.67% for the quarter that ended in Apr. 2014 => 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

Feb04Feb05Feb06Feb07Feb08Feb09Feb10Feb11Jan13Jan14
Gross_Profit 165.2167.9198.4216.8221.3189.0166.3155.4126.6151.0

Christopher & Banks Corp Quarterly Data

Nov11Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Gross_Profit 26.821.728.741.335.037.134.945.034.137.9
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