Dixons Retail (LSE:DXNS) Gross Margin % : -76.38% (As of Apr. 2014)

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What is Dixons Retail Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dixons Retail's Gross Profit for the six months ended in Apr. 2014 was £-2,892 Mil. Dixons Retail's Revenue for the six months ended in Apr. 2014 was £3,786 Mil. Therefore, Dixons Retail's Gross Margin % for the quarter that ended in Apr. 2014 was -76.38%.

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

LSE:DXNS' s Gross Margin % Range Over the Past 10 Years
Min: 5.37 Med: 9.55 Max: 100
Current: 7.47

During the past 13 years, the highest Gross Margin % of Dixons Retail was 100.00%. The lowest was 5.37%. And the median was 9.55%.

LSE:DXNS's Gross Margin % is not ranked
in the Retail - Cyclical industry.
Industry Median: 36.64 vs LSE:DXNS: 7.47

Dixons Retail had a gross margin of -76.38% for the quarter that ended in Apr. 2014 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Dixons Retail was 5.00% per year.

Dixons Retail Gross Margin % Historical Data

The historical data trend for Dixons Retail'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.

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Dixons Retail Gross Margin % Chart

Dixons Retail Annual Data

Trend

Apr05

Apr06

Apr07

May08

Apr09

Apr10

Apr11

Apr12

Apr13

Apr14

Gross Margin %

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7.52

5.91

6.43

7.44

7.47

Dixons Retail Semi-Annual Data
	Oct07	Oct08	Apr09	Oct09	Apr10	Oct10	Apr11	Oct11	Apr12	Oct12	Apr13	Oct13	Apr14
Gross Margin %	Get a 7-Day Free Trial								-56.59	-	-70.35	-	-76.38

Competitive Comparison of Dixons Retail's Gross Margin %

For the Specialty Retail subindustry, Dixons Retail'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.

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

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

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

Dixons Retail Gross Margin % Calculation

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

Dixons Retail's Gross Margin for the fiscal year that ended in Apr. 2014 is calculated as

Gross Margin % (A: Apr. 2014 )	=	Gross Profit (A: Apr. 2014 )	/	Revenue (A: Apr. 2014 )
	=	539.4	/	7217.7
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(7217.7 - 6678.3)	/	7217.7
	=	7.47 %

Dixons Retail's Gross Margin for the quarter that ended in Apr. 2014 is calculated as

Gross Margin % (Q: Apr. 2014 )	=	Gross Profit (Q: Apr. 2014 )	/	Revenue (Q: Apr. 2014 )
	=	-2892	/	3786.3
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3786.3 - 6678.3)	/	3786.3
	=	-76.38 %

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.

Dixons Retail (LSE:DXNS) 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

Dixons Retail had a gross margin of -76.38% for the quarter that ended in Apr. 2014 => No sustainable 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.

Dixons Retail Gross Margin % Related Terms

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Dixons Retail (LSE:DXNS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Dixons Retail PLC (LSE:DXNS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.dixonsretail.com

Dixons Retail PLC is an electrical retailer and service company which sell consumer electronics, personal computers, domestic appliances, photographic equipment, communication products and related services. The Group's reportable segments are; UK & Ireland comprises of electrical and computing retail chains as well as business to business activities. The division is engaged in multi-channel retail sales, associated peripherals and services and related financial and after sales services and also in business to business sales of computer hardware and software; Nordics operates in Norway, Sweden, Finland, Denmark, Iceland, Greenland and the Faroe Islands. The division engages in multi-channel retail sales and provided related product support services to its customers; Other International comprises operations in Italy, Greece, the Czech Republic, Slovakia, Turkey and the business to be closed in Spain which is excluded from underlying results. The Other International division engages in retail sales and provides related product support services to its customers in all of its markets; and Pure play e-commerce comprises pure play online retailers and operates in all of the countries in which the other divisions operate and across Europe.

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