The Cato's gross profit for the
three
months ended in Jan. 2024 was $56.1 Mil. The Cato's gross profit for the trailing twelve months (TTM) ended in Jan. 2024 was $243.7 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. The Cato's gross profit for the
three
months ended in Jan. 2024 was $56.1 Mil. The Cato's Revenue for the
three
months ended in Jan. 2024 was $174.9 Mil. Therefore, The Cato's Gross Margin % for the quarter that ended in Jan. 2024 was 32.08%.
The Cato had a gross margin of 32.08% for the quarter that ended in Jan. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of The Cato was 41.10%. The lowest was 24.68%. And the median was 37.05%.
The Cato Gross Profit Historical Data
The historical data trend for The Cato's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, The Cato's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Cato Gross Profit Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, The Cato's Gross Profit distribution charts can be found below:
* The bar in red indicates where The Cato's Gross Profit falls into.
The Cato Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
The Cato's Gross Profit for the fiscal year that ended in Jan. 2024 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $243.7 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
The Cato's Gross Margin % for the quarter that ended in Jan. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange 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.
The Cato (NYSE:CATO) Gross Profit 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
The Cato had a gross margin of 32.08% for the quarter that ended in Jan. 2024 => Competition eroding margins
The Cato Gross Profit Related Terms
Thank you for viewing the detailed overview of The Cato's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
The Cato Corp operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. Its primary objective is to be the fashion specialty retailer for fashion and value in its markets. The company operates through the following business segments: Retail and Credit. The Retail segment which generates majority revenue offers fashion specialty stores. The Credit segment involves credit card services.
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