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Perry Ellis International Inc (NAS:PERY)
Gross Margin
36.39% (As of Apr. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Perry Ellis International Inc's gross profit for the three months ended in Apr. 2016 was $95.1 Mil. Perry Ellis International Inc's revenue for the three months ended in Apr. 2016 was $261.3 Mil. Therefore, Perry Ellis International Inc's Gross Margin for the quarter that ended in Apr. 2016 was 36.39%.

PERY' s Gross Margin Range Over the Past 10 Years
Min: 32.69   Max: 35.74
Current: 36.47

32.69
35.74

During the past 13 years, the highest Gross Margin of Perry Ellis International Inc was 35.74%. The lowest was 32.69%. And the median was 33.21%.

PERY's Gross Margin is ranked higher than
51% of the 735 Companies
in the Global Apparel Manufacturing industry.

( Industry Median: 35.88 vs. PERY: 36.47 )

Perry Ellis International Inc had a gross margin of 36.39% for the quarter that ended in Apr. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Perry Ellis International Inc was 0.20% per year.


Definition

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

Perry Ellis International Inc's Gross Margin for the fiscal year that ended in Jan. 2016 is calculated as

Gross Margin (A: Jan. 2016 )=Gross Profit (A: Jan. 2016 ) / Revenue (A: Jan. 2016 )
=319.1 / 899.515
=(Revenue - Cost of Goods Sold) / Revenue
=(899.515 - 580.448) / 899.515
=35.47 %

Perry Ellis International Inc's Gross Margin for the quarter that ended in Apr. 2016 is calculated as

Gross Margin (Q: Apr. 2016 )=Gross Profit (Q: Apr. 2016 ) / Revenue (Q: Apr. 2016 )
=95.1 / 261.294
=(Revenue - Cost of Goods Sold) / Revenue
=(261.294 - 166.21) / 261.294
=36.39 %

* 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

Perry Ellis International Inc had a gross margin of 36.39% for the quarter that ended in Apr. 2016 => 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.

Perry Ellis International Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
Gross Margin 33.2333.7632.6933.0335.7433.0132.7233.1934.0535.47

Perry Ellis International Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
Gross Margin 34.0734.6233.2534.2533.8235.6035.6837.1936.3936.61
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