THG (CHIX:THGL) Gross Margin % : 40.23% (As of Dec. 2023)

View and export this data going back to 2020. Start your Free Trial

What is THG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. THG's Gross Profit for the three months ended in Dec. 2023 was £433 Mil. THG's Revenue for the three months ended in Dec. 2023 was £1,076 Mil. Therefore, THG's Gross Margin % for the quarter that ended in Dec. 2023 was 40.23%.

Warning Sign:

THG PLC gross margin has been in long-term decline. The average rate of decline per year is -2.4%.

The historical rank and industry rank for THG's Gross Margin % or its related term are showing as below:

CHIX:THGl' s Gross Margin % Range Over the Past 10 Years
Min: 39.3 Med: 43.57 Max: 45.59
Current: 41.08

During the past 7 years, the highest Gross Margin % of THG was 45.59%. The lowest was 39.30%. And the median was 43.57%.

CHIX:THGl's Gross Margin % is ranked better than
57.72% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 36.51 vs CHIX:THGl: 41.08

THG had a gross margin of 40.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for THG was -2.40% per year.

THG Gross Margin % Historical Data

The historical data trend for THG's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

THG Gross Margin % Chart

THG Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

43.57

44.20

43.78

39.30

41.08

THG Quarterly Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial							42.34	41.39	37.39	42.03	40.23

Competitive Comparison of THG's Gross Margin %

For the Internet Retail subindustry, THG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

THG's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, THG's Gross Margin % distribution charts can be found below:

* The bar in red indicates where THG's Gross Margin % falls into.

THG Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

THG's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	840.3	/	2045.378
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2045.378 - 1205.088)	/	2045.378
	=	41.08 %

THG's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	432.9	/	1076.118
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1076.118 - 643.193)	/	1076.118
	=	40.23 %

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.

THG (CHIX:THGl) Gross Margin % 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

THG had a gross margin of 40.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

THG Gross Margin % Related Terms

Thank you for viewing the detailed overview of THG's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.

THG (CHIX:THGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » THG PLC (CHIX:THGl) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

THGPF:USA THG:UK

Address

Icon 1, Sunbank Lane, Ringway, Altrincham, GBR, WA15 0AF

Website

https://www.thg.com

THG PLC is an online retailer. It provides an end-to-end direct-to-consumer ("D2C") e-commerce solution for consumer brand owners under a Software as a Service, in addition to stand-alone services, including hosting, content creation and translation. Its business is operated through four businesses: THG Ingenuity, THG Nutrition, THG Beauty and Other. The company operates in the United Kingdom.

THG (CHIX:THGL) Headlines

No Headlines