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Regis Corporation (NYSE:RGS)
Gross Profit
$817 Mil (TTM As of Dec. 2013)

Regis Corporation's gross profit for the three months ended in Dec. 2013 was $194 Mil. Regis Corporation's gross profit for the trailing twelve months (TTM) ended in Dec. 2013 was $817 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Regis Corporation's gross profit for the three months ended in Dec. 2013 was $194 Mil. Regis Corporation's revenue for the three months ended in Dec. 2013 was $468 Mil. Therefore, Regis Corporation's Gross Margin for the quarter that ended in Dec. 2013 was 41.53%.

Regis Corporation had a gross margin of 41.53% for the quarter that ended in Dec. 2013 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Regis Corporation was 46.88%. The lowest was 23.69%. And the median was 45.05%.

Warning Sign:

Regis Corporation gross margin has been in long term decline. The average rate of decline per year is -1.1%.


Definition

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

Regis Corporation's Gross Profit for the fiscal year that ended in Jun. 2013 is calculated as

Gross Profit (A: Jun. 2013 )=Revenue - Cost of Goods Sold
=2018.713 - 1159.264
=859

Regis Corporation's Gross Profit for the quarter that ended in Dec. 2013 is calculated as

Gross Profit (Q: Dec. 2013 )=Revenue - Cost of Goods Sold
=468.367 - 273.874
=194

Regis Corporation Gross Profit for the trailing twelve months (TTM) ended in Dec. 2013 was 217.34 (Mar. 2013 ) + 205.573 (Jun. 2013 ) + 199.544 (Sep. 2013 ) + 194.493 (Dec. 2013 ) = $817 Mil.

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

Regis Corporation's Gross Margin for the quarter that ended in Dec. 2013 is calculated as

Gross Margin (Q: Dec. 2013 )=Gross Profit (Q: Dec. 2013 ) / Revenue (Q: Dec. 2013 )
=(Revenue - Cost of Goods Sold) / Revenue
=194 / 468.367
=41.53 %

* 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

Regis Corporation had a gross margin of 41.53% for the quarter that ended in Dec. 2013 => 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.

Regis Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
Gross_Profit 9011,0221,1311,2311,2521,1021,079982959859

Regis Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
Gross_Profit 243238240239220217217206200194
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