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De'Longhi SPA (De'Longhi SPA) Gross Margin % : -7.10% (As of Dec. 2023)


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What is De'Longhi SPA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. De'Longhi SPA's Gross Profit for the three months ended in Dec. 2023 was $-83 Mil. De'Longhi SPA's Revenue for the three months ended in Dec. 2023 was $1,173 Mil. Therefore, De'Longhi SPA's Gross Margin % for the quarter that ended in Dec. 2023 was -7.10%.

Warning Sign:

De'Longhi SPA 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 De'Longhi SPA's Gross Margin % or its related term are showing as below:

DELHF' s Gross Margin % Range Over the Past 10 Years
Min: 25.5   Med: 30.32   Max: 31.41
Current: 29.6


During the past 13 years, the highest Gross Margin % of De'Longhi SPA was 31.41%. The lowest was 25.50%. And the median was 30.32%.

DELHF's Gross Margin % is ranked better than
53.81% of 407 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.42 vs DELHF: 29.60

De'Longhi SPA had a gross margin of -7.10% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for De'Longhi SPA was -1.60% per year.


De'Longhi SPA Gross Margin % Historical Data

The historical data trend for De'Longhi SPA'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.

De'Longhi SPA Gross Margin % Chart

De'Longhi SPA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.46 30.91 30.38 25.50 29.60

De'Longhi SPA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 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 -20.51 22.96 35.72 85.06 -7.10

Competitive Comparison of De'Longhi SPA's Gross Margin %

For the Furnishings, Fixtures & Appliances subindustry, De'Longhi SPA'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.


De'Longhi SPA's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, De'Longhi SPA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where De'Longhi SPA's Gross Margin % falls into.



De'Longhi SPA Gross Margin % Calculation

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

De'Longhi SPA's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=992.2 / 3351.696
=(Revenue - Cost of Goods Sold) / Revenue
=(3351.696 - 2359.466) / 3351.696
=29.60 %

De'Longhi SPA'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 )
=-83.2 / 1173.07
=(Revenue - Cost of Goods Sold) / Revenue
=(1173.07 - 1256.303) / 1173.07
=-7.10 %

* 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.


De'Longhi SPA  (OTCPK:DELHF) 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

De'Longhi SPA had a gross margin of -7.10% for the quarter that ended in Dec. 2023 => 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.


De'Longhi SPA Gross Margin % Related Terms

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


De'Longhi SPA (De'Longhi SPA) Business Description

Traded in Other Exchanges
Address
Via Lodovico Seitz, 47, Treviso, ITA, 31100
De'Longhi SPA is an Italy-based company that is principally engaged in designing, producing, and selling small domestic appliances. The company's products consist of coffeemakers, cooking and food products, ironing products, floor-care products, air conditioners and air treatment products, heating products, and others. The company generates the majority of its revenue from coffeemakers and cooking and food preparation products. It offers products under four brands: De'Longhi, Kenwood, Nutribullet, Magic Bullet,Braun, and Ariete. Products under the De'Longhi brand contribute over half of total revenue. The company has a business presence across the world, including Europe, America, Australia and New Zealand, Asia, and elsewhere, with Europe its largest market.

De'Longhi SPA (De'Longhi SPA) Headlines

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