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New York & Company Inc (NYSE:NWY)
Gross Profit
$262.2 Mil (TTM As of Jul. 2014)

New York & Company Inc's gross profit for the three months ended in Jul. 2014 was $61.9 Mil. New York & Company Inc's gross profit for the trailing twelve months (TTM) ended in Jul. 2014 was $262.2 Mil.

Gross Margin is calculated as gross profit divided by its revenue. New York & Company Inc's gross profit for the three months ended in Jul. 2014 was $61.9 Mil. New York & Company Inc's revenue for the three months ended in Jul. 2014 was $226.1 Mil. Therefore, New York & Company Inc's Gross Margin for the quarter that ended in Jul. 2014 was 27.39%.

New York & Company Inc had a gross margin of 27.39% for the quarter that ended in Jul. 2014 => Competition eroding margins

During the past 11 years, the highest Gross Margin of New York & Company Inc was 34.33%. The lowest was 22.84%. And the median was 28.15%.


Definition

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

New York & Company 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
=939.163 - 674.793
=264.4

New York & Company Inc's Gross Profit for the quarter that ended in Jul. 2014 is calculated as

Gross Profit (Q: Jul. 2014 )=Revenue - Cost of Goods Sold
=226.066 - 164.148
=61.9

New York & Company Inc Gross Profit for the trailing twelve months (TTM) ended in Jul. 2014 was 60.988 (Oct. 2013 ) + 77.046 (Jan. 2014 ) + 62.204 (Apr. 2014 ) + 61.918 (Jul. 2014 ) = $262.2 Mil.

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

New York & Company Inc's Gross Margin for the quarter that ended in Jul. 2014 is calculated as

Gross Margin (Q: Jul. 2014 )=Gross Profit (Q: Jul. 2014 ) / Revenue (Q: Jul. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=61.9 / 226.066
=27.39 %

* 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

New York & Company Inc had a gross margin of 27.39% for the quarter that ended in Jul. 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.

New York & Company Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 357.1366.5374.8343.2296.4252.6233.3221.6264.8264.4

New York & Company Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
Gross_Profit 64.657.760.981.666.360.061.077.062.261.9
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