GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Delhaize Group SA (NYSE:DEG) » Definitions » Gross Margin %

Delhaize Group (Delhaize Group) Gross Margin % : 24.51% (As of Mar. 2016)


View and export this data going back to 2001. Start your Free Trial

What is Delhaize Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Delhaize Group's Gross Profit for the three months ended in Mar. 2016 was $1,679 Mil. Delhaize Group's Revenue for the three months ended in Mar. 2016 was $6,852 Mil. Therefore, Delhaize Group's Gross Margin % for the quarter that ended in Mar. 2016 was 24.51%.


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


DEG's Gross Margin % is not ranked *
in the Retail - Defensive industry.
Industry Median: 22.835
* Ranked among companies with meaningful Gross Margin % only.

Delhaize Group had a gross margin of 24.51% for the quarter that ended in Mar. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Delhaize Group was 0.00% per year.


Delhaize Group Gross Margin % Historical Data

The historical data trend for Delhaize Group'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.

Delhaize Group Gross Margin % Chart

Delhaize Group Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.39 24.48 24.18 24.06 24.28

Delhaize Group Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.40 24.40 24.26 24.05 24.51

Competitive Comparison of Delhaize Group's Gross Margin %

For the Grocery Stores subindustry, Delhaize Group'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.


Delhaize Group's Gross Margin % Distribution in the Retail - Defensive Industry

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

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



Delhaize Group Gross Margin % Calculation

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

Delhaize Group's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=6451 / 26574.074
=(Revenue - Cost of Goods Sold) / Revenue
=(26574.074 - 20123.094) / 26574.074
=24.28 %

Delhaize Group's Gross Margin for the quarter that ended in Mar. 2016 is calculated as


Gross Margin % (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=1679.3 / 6851.893
=(Revenue - Cost of Goods Sold) / Revenue
=(6851.893 - 5172.606) / 6851.893
=24.51 %

* 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.

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.


Delhaize Group  (NYSE:DEG) 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

Delhaize Group had a gross margin of 24.51% for the quarter that ended in Mar. 2016 => Competition eroding margins


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.


Delhaize Group Gross Margin % Related Terms

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


Delhaize Group (Delhaize Group) Business Description

Traded in Other Exchanges
N/A
Address
Delhaize Group SA was founded in Belgium in 1867. It operates food supermarkets. Its conducts its retail operations through its businesses in the United States; Belgium and the Grand Duchy of Luxembourg, collectively as Delhaize Belgium; Greece, Romania and Serbia, collectively as Southeastern Europe; and Indonesia. Its store network also includes other store formats such as proximity, cash and carry and specialty stores. Its competitors include international, national, regional and local supermarket chains, supercenters, independent grocery stores, specialty food stores, warehouse club stores, retail drug chains, convenience stores, membership clubs, general merchandisers, discount retailers and restaurants. Food retail chains generally compete on the basis of location, quality of products, service, price, product variety, store condition and e-commerce offer. The Company's brands include Delhaize, Taste of Inspirations, 365, Care, Delhaize Eco and Delhaize Bio.