Gross Margin % is calculated as gross profit divided by its revenue. Sally Beauty Holdings's Gross Profit for the
three
months ended in Dec. 2023 was $467 Mil. Sally Beauty Holdings's Revenue for the
three
months ended in Dec. 2023 was $931 Mil. Therefore, Sally Beauty Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 50.16%.
The historical rank and industry rank for Sally Beauty Holdings's Gross Margin % or its related term are showing as below:
SBH'
s Gross Margin % Range Over the Past 10 Years
Min: 48.82 Med: 49.63 Max: 50.92
Current: 50.69
During the past 13 years, the highestGross Margin % of Sally Beauty Holdings was 50.92%. The lowest was 48.82%. And the median was 49.63%.
SBH's Gross Margin % is ranked better than 73.91% of 1096
companies
in the Retail - Cyclical industry
Industry Median: 36.74
vs SBH: 50.69
Sally Beauty Holdings had a gross margin of 50.16% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sally Beauty Holdings was 0.70% per year.
Sally Beauty Holdings Gross Margin % Historical Data
The historical data trend for Sally Beauty Holdings'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 Sally Beauty Holdings's Gross Margin %
For the Specialty Retail subindustry, Sally Beauty Holdings'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.
Sally Beauty Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sally Beauty Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sally Beauty Holdings'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
Sally Beauty Holdings had a gross margin of 50.16% for the quarter that ended in Dec. 2023 => Durable 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.
Sally Beauty Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sally Beauty Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sally Beauty Holdings (Sally Beauty Holdings) Business Description
Sally Beauty Holdings Inc is a professional beauty-products retailer based in the United States. Sally Beauty operates throughout the United States, Puerto Rico, the United Kingdom, Belgium, Canada, Chile, Colombia, Mexico, Peru, France, Ireland, Spain, Germany, and the Netherlands. The company operates through two business segments: Sally Beauty Supply and Beauty Systems Group. Product offerings include hair color and care, hair dryers and hair-styling appliances, nail care, skin care, and others.
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