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Woolworths Holdings (Woolworths Holdings) Gross Margin % : 36.66% (As of Dec. 2023)


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What is Woolworths Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Woolworths Holdings's Gross Profit for the six months ended in Dec. 2023 was $739 Mil. Woolworths Holdings's Revenue for the six months ended in Dec. 2023 was $2,015 Mil. Therefore, Woolworths Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 36.66%.

Warning Sign:

Woolworths Holdings Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.


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

WLWHY' s Gross Margin % Range Over the Past 10 Years
Min: 35.11   Med: 38.64   Max: 40.97
Current: 36.92


During the past 13 years, the highest Gross Margin % of Woolworths Holdings was 40.97%. The lowest was 35.11%. And the median was 38.64%.

WLWHY's Gross Margin % is ranked better than
50.46% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 36.66 vs WLWHY: 36.92

Woolworths Holdings had a gross margin of 36.66% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Woolworths Holdings was -1.30% per year.


Woolworths Holdings Gross Margin % Historical Data

The historical data trend for Woolworths 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.

Woolworths Holdings Gross Margin % Chart

Woolworths Holdings 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 38.25 35.11 36.75 35.53 37.12

Woolworths Holdings 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 35.15 35.90 37.06 37.18 36.66

Competitive Comparison of Woolworths Holdings's Gross Margin %

For the Department Stores subindustry, Woolworths 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.


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

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

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



Woolworths Holdings Gross Margin % Calculation

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

Woolworths Holdings'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 )
=1431.1 / 3855.256
=(Revenue - Cost of Goods Sold) / Revenue
=(3855.256 - 2424.139) / 3855.256
=37.12 %

Woolworths Holdings'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 )
=738.5 / 2014.512
=(Revenue - Cost of Goods Sold) / Revenue
=(2014.512 - 1275.976) / 2014.512
=36.66 %

* 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.


Woolworths Holdings  (OTCPK:WLWHY) 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

Woolworths Holdings had a gross margin of 36.66% for the quarter that ended in Dec. 2023 => 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.


Woolworths Holdings Gross Margin % Related Terms

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Woolworths Holdings (Woolworths Holdings) Business Description

Traded in Other Exchanges
Address
93 Longmarket Street, Woolworths House, Cape Town, WC, ZAF, 8001
Woolworths Holdings Ltd is a South Africa-based retail group. Forty percent of revenue (including concession sales) is generated in Australasia. The group has three main operating divisions: Woolworths South Africa, based in South Africa and operating across 11 countries in sub-Saharan Africa, and David Jones and Country Road Group, both based in Australia. Woolworths Financial Services is a joint venture between Woolworths and Barclays Africa Group; Barclays is supervising the credit policy, risk, and funding aspects, while Woolworths is leading the customer integration.

Woolworths Holdings (Woolworths Holdings) Headlines

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