Switch to:
New York & Company Inc (NYSE:NWY)
Gross Margin
27.23% (As of Oct. 2014)

Gross Margin is calculated as gross profit divided by its revenue. New York & Company Inc's gross profit for the three months ended in Oct. 2014 was $57.3 Mil. New York & Company Inc's revenue for the three months ended in Oct. 2014 was $210.3 Mil. Therefore, New York & Company Inc's Gross Margin for the quarter that ended in Oct. 2014 was 27.23%.

NWY' s 10-Year Gross Margin Range
Min: 22.84   Max: 34.33
Current: 27.88

22.84
34.33

During the past 11 years, the highest Gross Margin of New York & Company Inc was 34.33%. The lowest was 22.84%. And the median was 28.15%.

NWY's Gross Marginis ranked lower than
100% of the Companies
in the Global Apparel Stores industry.

( Industry Median: vs. NWY: 27.88 )

New York & Company Inc had a gross margin of 27.23% for the quarter that ended in Oct. 2014 => Competition eroding margins

The 3-Year average Growth Rate of Gross Margin for New York & Company Inc was 2.00% per year.


Definition

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

New York & Company Inc's Gross Margin for the fiscal year that ended in Jan. 2014 is calculated as

Gross Margin (A: Jan. 2014 )=Gross Profit (A: Jan. 2014 ) / Revenue (A: Jan. 2014 )
=264.4 / 939.163
=(Revenue - Cost of Goods Sold) / Revenue
=(939.163 - 674.793) / 939.163
=28.15 %

New York & Company Inc's Gross Margin for the quarter that ended in Oct. 2014 is calculated as

Gross Margin (Q: Oct. 2014 )=Gross Profit (Q: Oct. 2014 ) / Revenue (Q: Oct. 2014 )
=57.3 / 210.314
=(Revenue - Cost of Goods Sold) / Revenue
=(210.314 - 153.037) / 210.314
=27.23 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

New York & Company Inc had a gross margin of 27.23% for the quarter that ended in Oct. 2014 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

New York & Company Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
Gross Margin 34.3332.4231.4228.7226.0025.0922.8423.1727.4028.15

New York & Company Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
Gross Margin 25.3527.7927.9829.1626.9028.0228.4328.3327.3927.23
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK