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Truworths International (JSE:TRU) Gross Margin % : 53.62% (As of Dec. 2023)


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What is Truworths International Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Truworths International's Gross Profit for the six months ended in Dec. 2023 was R6,313 Mil. Truworths International's Revenue for the six months ended in Dec. 2023 was R11,774 Mil. Therefore, Truworths International's Gross Margin % for the quarter that ended in Dec. 2023 was 53.62%.


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

JSE:TRU' s Gross Margin % Range Over the Past 10 Years
Min: 50.76   Med: 52.56   Max: 55.85
Current: 52.62


During the past 13 years, the highest Gross Margin % of Truworths International was 55.85%. The lowest was 50.76%. And the median was 52.56%.

JSE:TRU's Gross Margin % is ranked better than
76.46% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.675 vs JSE:TRU: 52.62

Truworths International had a gross margin of 53.62% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Truworths International was 0.40% per year.


Truworths International Gross Margin % Historical Data

The historical data trend for Truworths International'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.

Truworths International Gross Margin % Chart

Truworths International Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 51.65 50.76 50.96 53.51 52.52

Truworths International Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 53.55 53.45 53.53 51.32 53.62

Competitive Comparison of Truworths International's Gross Margin %

For the Apparel Retail subindustry, Truworths International'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.


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

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

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



Truworths International Gross Margin % Calculation

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

Truworths International's Gross Margin for the fiscal year that ended in Jun. 2023 is calculated as

Gross Margin % (A: Jun. 2023 )=Gross Profit (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=10449 / 19894
=(Revenue - Cost of Goods Sold) / Revenue
=(19894 - 9445) / 19894
=52.52 %

Truworths International'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 )
=6313 / 11774
=(Revenue - Cost of Goods Sold) / Revenue
=(11774 - 5461) / 11774
=53.62 %

* 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.


Truworths International  (JSE:TRU) 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

Truworths International had a gross margin of 53.62% 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.


Truworths International Gross Margin % Related Terms

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Truworths International (JSE:TRU) Business Description

Traded in Other Exchanges
Address
Number 1 Mostert Street, CBD, Cape Town, WC, ZAF, 8001
Truworths International Ltd is a clothing and footwear retailer with nearly a thousand stores in Africa and Europe. Its African brands include Truworths, Daniel Hechter, Inwear, Identity, and LTD. Its European brands include Office and Offspring footwear retailers. The company's stores generally sell only proprietary brands, but Office primarily sells global third-party footwear brands. Most of the company's retail locations and sales are in South Africa. Collectively, South Africa and the United Kingdom account for roughly 90% of the company's business. E-commerce sales make up a small portion of total revenue.