Gross Margin % is calculated as gross profit divided by its revenue. Crown Crafts's Gross Profit for the
three
months ended in Dec. 2023 was $6.43 Mil. Crown Crafts's Revenue for the
three
months ended in Dec. 2023 was $23.80 Mil. Therefore, Crown Crafts's Gross Margin % for the quarter that ended in Dec. 2023 was 27.03%.
Warning Sign:
Crown Crafts Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Crown Crafts's Gross Margin % or its related term are showing as below:
CRWS'
s Gross Margin % Range Over the Past 10 Years
Min: 25.96 Med: 28.19 Max: 30.44
Current: 25.96
During the past 13 years, the highestGross Margin % of Crown Crafts was 30.44%. The lowest was 25.96%. And the median was 28.19%.
CRWS's Gross Margin % is ranked worse than 59.46% of 407
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.6
vs CRWS: 25.96
Crown Crafts had a gross margin of 27.03% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Crown Crafts was -1.60% per year.
Crown Crafts Gross Margin % Historical Data
The historical data trend for Crown Crafts'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.
Competitive Comparison of Crown Crafts's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, Crown Crafts'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.
Crown Crafts's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Crown Crafts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Crown Crafts's Gross Margin % falls into.
* 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.
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
Crown Crafts had a gross margin of 27.03% 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.
Crown Crafts Gross Margin % Related Terms
Thank you for viewing the detailed overview of Crown Crafts's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Crown Crafts Inc operates in the infant and toddler products segment of the consumer products industry through its wholly-owned subsidiaries. The infant and toddler products segment consists of infant and toddler bedding, bibs, soft bath products, disposable products, and accessories. The company serves a diverse range of customers including mass merchants, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, internet accounts, wholesale clubs, and internet-based retailers. The company's brands include NoJo, Neat Solutions, Sassy, and Carousel. Its products are marketed under a variety of company-owned trademarks, under trademarks licensed from others, and as private-label goods.
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