Gross Margin % is calculated as gross profit divided by its revenue. Ross Stores's Gross Profit for the
three
months ended in Jan. 2024 was $1,647 Mil. Ross Stores's Revenue for the
three
months ended in Jan. 2024 was $6,023 Mil. Therefore, Ross Stores's Gross Margin % for the quarter that ended in Jan. 2024 was 27.35%.
The historical rank and industry rank for Ross Stores's Gross Margin % or its related term are showing as below:
ROST'
s Gross Margin % Range Over the Past 10 Years
Min: 21.49 Med: 28.09 Max: 28.95
Current: 27.36
During the past 13 years, the highestGross Margin % of Ross Stores was 28.95%. The lowest was 21.49%. And the median was 28.09%.
ROST's Gross Margin % is ranked worse than 67.61% of 1093
companies
in the Retail - Cyclical industry
Industry Median: 36.86
vs ROST: 27.36
Ross Stores had a gross margin of 27.35% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Ross Stores was -0.70% per year.
Ross Stores Gross Margin % Historical Data
The historical data trend for Ross Stores'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.
Ross Stores Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
Gross Margin %
28.07
21.49
27.53
25.40
27.36
Ross Stores Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Gross Margin %
24.70
26.74
27.67
27.63
27.35
Competitive Comparison
For the Apparel Retail subindustry, Ross Stores'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.
Ross Stores Gross Margin % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ross Stores'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.
Ross Stores (NAS:ROST) 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
Ross Stores had a gross margin of 27.35% for the quarter that ended in Jan. 2024 => 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.
Ross Stores Gross Margin % Related Terms
Thank you for viewing the detailed overview of Ross Stores's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The firm opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are frequently filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates nearly 350 DD's Discounts chains that target lower-income shoppers.
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