GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Fairway Group Holdings Corp (OTCPK:FWMHQ) » Definitions » Gross Margin %

Fairway Group Holdings (Fairway Group Holdings) Gross Margin % : 31.13% (As of Dec. 2015)


View and export this data going back to 2013. Start your Free Trial

What is Fairway Group Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Fairway Group Holdings's Gross Profit for the three months ended in Dec. 2015 was $59.7 Mil. Fairway Group Holdings's Revenue for the three months ended in Dec. 2015 was $191.7 Mil. Therefore, Fairway Group Holdings's Gross Margin % for the quarter that ended in Dec. 2015 was 31.13%.


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


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

Fairway Group Holdings had a gross margin of 31.13% for the quarter that ended in Dec. 2015 => Competition eroding margins

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


Fairway Group Holdings Gross Margin % Historical Data

The historical data trend for Fairway Group Holdings'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.

Fairway Group Holdings Gross Margin % Chart

Fairway Group Holdings Annual Data
Trend Mar10 Mar11 Mar12 Mar13 Mar14 Mar15
Gross Margin %
Get a 7-Day Free Trial 32.84 33.55 32.65 32.39 31.31

Fairway Group Holdings Quarterly Data
Mar10 Mar11 Jun11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15
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 31.45 32.21 31.45 30.87 31.13

Competitive Comparison of Fairway Group Holdings's Gross Margin %

For the Grocery Stores subindustry, Fairway Group Holdings'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.


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

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

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



Fairway Group Holdings Gross Margin % Calculation

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

Fairway Group Holdings's Gross Margin for the fiscal year that ended in Mar. 2015 is calculated as

Gross Margin % (A: Mar. 2015 )=Gross Profit (A: Mar. 2015 ) / Revenue (A: Mar. 2015 )
=249.7 / 797.555
=(Revenue - Cost of Goods Sold) / Revenue
=(797.555 - 547.869) / 797.555
=31.31 %

Fairway Group Holdings's Gross Margin for the quarter that ended in Dec. 2015 is calculated as


Gross Margin % (Q: Dec. 2015 )=Gross Profit (Q: Dec. 2015 ) / Revenue (Q: Dec. 2015 )
=59.7 / 191.683
=(Revenue - Cost of Goods Sold) / Revenue
=(191.683 - 132.006) / 191.683
=31.13 %

* 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.


Fairway Group Holdings  (OTCPK:FWMHQ) 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

Fairway Group Holdings had a gross margin of 31.13% for the quarter that ended in Dec. 2015 => 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.


Fairway Group Holdings Gross Margin % Related Terms

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


Fairway Group Holdings (Fairway Group Holdings) Business Description

Traded in Other Exchanges
N/A
Address
Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.
Executives
Edward C Arditte officer: Co-President and CFO 9 ROSZEL ROAD, PRINCETON NJ 08540
Linda Siluk officer: VP Finance and CAO C/O FAIRWAY GROUP HOLDINGS CORP., 2284 12TH AVENUE, NEW YORK NY 10027
Stephen Key director 66 EAST WADSWORTH PARK DRIVE, DRAPER UT 84020
William E Sanford officer: Interim CEO C/O FAIRWAY GROUP HOLDINGS CORP. 2284 12TH AVENUE NEW YORK NY 10027
Robert Magnus director 2366 BERNVILLE ROAD, READING PA 19605

Fairway Group Holdings (Fairway Group Holdings) Headlines

From GuruFocus

Weekly 3-Year Lows Highlight: FWM, FST, LAND, RDNT

By Jimmy Xiao gurujx 01-13-2014