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Buckle, Inc. (NYSE:BKE)
Gross Profit
$504 Mil (TTM As of Apr. 2015)

Buckle, Inc.'s gross profit for the three months ended in Apr. 2015 was $114 Mil. Buckle, Inc.'s gross profit for the trailing twelve months (TTM) ended in Apr. 2015 was $504 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Buckle, Inc.'s gross profit for the three months ended in Apr. 2015 was $114 Mil. Buckle, Inc.'s revenue for the three months ended in Apr. 2015 was $271 Mil. Therefore, Buckle, Inc.'s Gross Margin for the quarter that ended in Apr. 2015 was 41.86%.

Buckle, Inc. had a gross margin of 41.86% for the quarter that ended in Apr. 2015 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Buckle, Inc. was 44.60%. The lowest was 32.80%. And the median was 38.36%.


Definition

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

Buckle, Inc.'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
=1153.142 - 645.81
=507

Buckle, Inc.'s Gross Profit for the quarter that ended in Apr. 2015 is calculated as

Gross Profit (Q: Apr. 2015 )=Revenue - Cost of Goods Sold
=271.345 - 157.748
=114

Buckle, Inc. Gross Profit for the trailing twelve months (TTM) ended in Apr. 2015 was 94.925 (Jul. 2014 ) + 127.792 (Oct. 2014 ) + 167.415 (Jan. 2015 ) + 113.597 (Apr. 2015 ) = $504 Mil.

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

Buckle, Inc.'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
=114 / 271.345
=41.86 %

* 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

Buckle, Inc. had a gross margin of 41.86% for the quarter that ended in Apr. 2015 => 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.

Buckle, Inc. Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Gross_Profit 194207255343401419469499499507

Buckle, Inc. Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Gross_Profit 1731179412616111795128167114
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