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Dillard's Inc (NYSE:DDS)
Gross Profit
$2,284 Mil (TTM As of Oct. 2016)

Dillard's Inc's gross profit for the three months ended in Oct. 2016 was $528 Mil. Dillard's Inc's gross profit for the trailing twelve months (TTM) ended in Oct. 2016 was $2,284 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Dillard's Inc's gross profit for the three months ended in Oct. 2016 was $528 Mil. Dillard's Inc's revenue for the three months ended in Oct. 2016 was $1,406 Mil. Therefore, Dillard's Inc's Gross Margin for the quarter that ended in Oct. 2016 was 37.51%.

Dillard's Inc had a gross margin of 37.51% for the quarter that ended in Oct. 2016 => Competition eroding margins

During the past 13 years, the highest Gross Margin of Dillard's Inc was 37.09%. The lowest was 30.92%. And the median was 35.99%.


Definition

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

Dillard's Inc's Gross Profit for the fiscal year that ended in Jan. 2016 is calculated as

Gross Profit (A: Jan. 2016 )=Revenue - Cost of Goods Sold
=6754.545 - 4350.805
=2,404

Dillard's Inc's Gross Profit for the quarter that ended in Oct. 2016 is calculated as

Gross Profit (Q: Oct. 2016 )=Revenue - Cost of Goods Sold
=1406.495 - 878.865
=528

Dillard's Inc Gross Profit for the trailing twelve months (TTM) ended in Oct. 2016 was 660.294 (Jan. 2016 ) + 600.218 (Apr. 2016 ) + 495.391 (Jul. 2016 ) + 527.63 (Oct. 2016 ) = $2,284 Mil.

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

Dillard's Inc's Gross Margin for the quarter that ended in Oct. 2016 is calculated as

Gross Margin (Q: Oct. 2016 )=Gross Profit (Q: Oct. 2016 ) / Revenue (Q: Oct. 2016 )
=(Revenue - Cost of Goods Sold) / Revenue
=528 / 1406.495
=37.51 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Dillard's Inc had a gross margin of 37.51% for the quarter that ended in Oct. 2016 => 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 local exchange's currency.

Dillard's Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross_Profit 2,7782,5842,1612,1242,2772,3582,5042,4682,5082,404

Dillard's Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
Gross_Profit 537575747653531560660600495528
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