Switch to:
Tiffany & Co (NYSE:TIF)
Gross Profit
$2,427 Mil (TTM As of Apr. 2014)

Tiffany & Co's gross profit for the three months ended in Apr. 2014 was $590 Mil. Tiffany & Co's gross profit for the trailing twelve months (TTM) ended in Apr. 2014 was $2,427 Mil.

Gross Margin is calculated as gross profit divided by its revenue. Tiffany & Co's gross profit for the three months ended in Apr. 2014 was $590 Mil. Tiffany & Co's revenue for the three months ended in Apr. 2014 was $1,012 Mil. Therefore, Tiffany & Co's Gross Margin for the quarter that ended in Apr. 2014 was 58.25%.

Tiffany & Co had a gross margin of 58.25% for the quarter that ended in Apr. 2014 => Durable competitive advantage

During the past 13 years, the highest Gross Margin of Tiffany & Co was 59.66%. The lowest was 55.55%. And the median was 57.61%.


Definition

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

Tiffany & Co'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
=4031.13 - 1690.687
=2,340

Tiffany & Co's Gross Profit for the quarter that ended in Apr. 2014 is calculated as

Gross Profit (Q: Apr. 2014 )=Revenue - Cost of Goods Sold
=1012.132 - 422.606
=590

Tiffany & Co Gross Profit for the trailing twelve months (TTM) ended in Apr. 2014 was 532.129 (Jul. 2013 ) + 519.481 (Oct. 2013 ) + 785.609 (Jan. 2014 ) + 589.526 (Apr. 2014 ) = $2,427 Mil.

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

Tiffany & Co's Gross Margin for the quarter that ended in Apr. 2014 is calculated as

Gross Margin (Q: Apr. 2014 )=Gross Profit (Q: Apr. 2014 ) / Revenue (Q: Apr. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=590 / 1012.132
=58.25 %

* 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

Tiffany & Co had a gross margin of 58.25% for the quarter that ended in Apr. 2014 => 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.

Tiffany & Co Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross_Profit 1,2311,3081,4731,6571,6461,5301,8222,1512,1632,340

Tiffany & Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Gross_Profit 717469499464731503532519786590
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide