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Dillards Inc (NYSE:DDS)
Gross Profit
$2,468 Mil (TTM As of Jan. 2014)

Dillards Inc's gross profit for the three months ended in Jan. 2014 was $707 Mil. Dillards Inc's gross profit for the trailing twelve months (TTM) ended in Jan. 2014 was $2,468 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Dillards Inc's gross profit for the three months ended in Jan. 2014 was $707 Mil. Dillards Inc's revenue for the three months ended in Jan. 2014 was $2,079 Mil. Therefore, Dillards Inc's Gross Margin for the quarter that ended in Jan. 2014 was 34.01%.

Dillards Inc had a gross margin of 34.01% for the quarter that ended in Jan. 2014 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Dillards Inc was 37.09%. The lowest was 30.92%. And the median was 33.74%.


Definition

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

Dillards Inc'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
=6691.777 - 4223.715
=2,468

Dillards Inc's Gross Profit for the quarter that ended in Jan. 2014 is calculated as

Gross Profit (Q: Jan. 2014 )=Revenue - Cost of Goods Sold
=2078.675 - 1371.701
=707

Dillards Inc Gross Profit for the trailing twelve months (TTM) ended in Jan. 2014 was 651.596 (Apr. 2013 ) + 539.974 (Jul. 2013 ) + 569.518 (Oct. 2013 ) + 706.974 (Jan. 2014 ) = $2,468 Mil.

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

Dillards Inc's Gross Margin for the quarter that ended in Jan. 2014 is calculated as

Gross Margin (Q: Jan. 2014 )=Gross Profit (Q: Jan. 2014 ) / Revenue (Q: Jan. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=707 / 2078.675
=34.01 %

* 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

Dillards Inc had a gross margin of 34.01% for the quarter that ended in Jan. 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.

Dillards Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 2,7872,6812,7782,5842,1612,1242,2772,3582,5042,468

Dillards Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
Gross_Profit 537709629537567771652540570707
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