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Regis Corp (NYSE:RGS)
Gross Profit
$754 Mil (TTM As of Mar. 2016)

Regis Corp's gross profit for the three months ended in Mar. 2016 was $183 Mil. Regis Corp's gross profit for the trailing twelve months (TTM) ended in Mar. 2016 was $754 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Regis Corp's gross profit for the three months ended in Mar. 2016 was $183 Mil. Regis Corp's revenue for the three months ended in Mar. 2016 was $443 Mil. Therefore, Regis Corp's Gross Margin for the quarter that ended in Mar. 2016 was 41.24%.

Regis Corp had a gross margin of 41.24% for the quarter that ended in Mar. 2016 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Regis Corp was 46.88%. The lowest was 38.33%. And the median was 45.53%.

Warning Sign:

Regis Corp gross margin has been in long term decline. The average rate of decline per year is -2.1%.


Definition

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

Regis Corp's Gross Profit for the fiscal year that ended in Jun. 2015 is calculated as

Gross Profit (A: Jun. 2015 )=Revenue - Cost of Goods Sold
=1837.287 - 1063.275
=774

Regis Corp's Gross Profit for the quarter that ended in Mar. 2016 is calculated as

Gross Profit (Q: Mar. 2016 )=Revenue - Cost of Goods Sold
=442.565 - 260.046
=183

Regis Corp Gross Profit for the trailing twelve months (TTM) ended in Mar. 2016 was 198.274 (Jun. 2015 ) + 189.326 (Sep. 2015 ) + 183.411 (Dec. 2015 ) + 182.519 (Mar. 2016 ) = $754 Mil.

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

Regis Corp's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=183 / 442.565
=41.24 %

* 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 Corp had a gross margin of 41.24% for the quarter that ended in Mar. 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.

Regis Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Gross_Profit 9321,2311,2521,1021,0791,0631,039859798774

Regis Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross_Profit 194199205196188192198189183183
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