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GuruFocus has detected 2 Warning Signs with Francescas Holdings Corp \$FRAN.
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Francescas Holdings Corp (NAS:FRAN)
COGS-to-Revenue
0.54 (As of Jan. 2017)

Francescas Holdings Corp's cost of goods sold for the three months ended in Jan. 2017 was \$78.4 Mil. Its revenue for the three months ended in Jan. 2017 was \$146.3 Mil.

Francescas Holdings Corp's COGS to Revenue for the three months ended in Jan. 2017 was 0.54.

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin. Francescas Holdings Corp's Gross Margin for the three months ended in Jan. 2017 was 46.42%.

Definition

Francescas Holdings Corp's COGS to Revenue for the fiscal year that ended in Jan. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 258.561 / 487.188 = 0.53

Francescas Holdings Corp's COGS to Revenue for the quarter that ended in Jan. 2017 is calculated as

 COGS to Revenue = Cost of Goods Sold / Revenue = 78.412 / 146.345 = 0.54

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

Explanation

Cost of Goods Sold is directly linked to profitability of the company through Gross Margin.

Francescas Holdings Corp's Gross Margin for the three months ended in Jan. 2017 is calculated as:

 Gross Margin = 1 - COGS to Revenue = 1 - Cost of Goods Sold / Revenue = 1 - 78.412 / 146.345 = 46.42 %

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

A company that has a moat can usually maintain or even expand their Gross Margin. A company can increase its Gross Margin in two ways. It can increase the prices of the goods it sells and keeps its Cost of Goods Sold unchanged. Or it can keep the sales price unchanged and squeeze its suppliers to reduce the Cost of Goods Sold. Warren Buffett believes businesses with the power to raise prices have moats.

Related Terms

Historical Data

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

Francescas Holdings Corp Annual Data

 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 cogs2rev 0.00 0.00 0.47 0.48 0.48 0.47 0.48 0.53 0.52 0.53

Francescas Holdings Corp Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 cogs2rev 0.53 0.54 0.53 0.53 0.53 0.51 0.54 0.53 0.52 0.54
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