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SUPERVALU (SUPERVALU) Gross Margin % : 8.37% (As of Aug. 2018)


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What is SUPERVALU Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. SUPERVALU's Gross Profit for the three months ended in Aug. 2018 was $294 Mil. SUPERVALU's Revenue for the three months ended in Aug. 2018 was $3,512 Mil. Therefore, SUPERVALU's Gross Margin % for the quarter that ended in Aug. 2018 was 8.37%.


The historical rank and industry rank for SUPERVALU's Gross Margin % or its related term are showing as below:


SVU's Gross Margin % is not ranked *
in the Retail - Defensive industry.
Industry Median: 22.835
* Ranked among companies with meaningful Gross Margin % only.

SUPERVALU had a gross margin of 8.37% for the quarter that ended in Aug. 2018 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for SUPERVALU was 0.00% per year.


SUPERVALU Gross Margin % Historical Data

The historical data trend for SUPERVALU'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.

SUPERVALU Gross Margin % Chart

SUPERVALU Annual Data
Trend Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.72 14.30 13.04 12.78 10.25

SUPERVALU Quarterly Data
Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18
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 9.86 10.39 2.61 9.00 8.37

Competitive Comparison of SUPERVALU's Gross Margin %

For the Grocery Stores subindustry, SUPERVALU'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.


SUPERVALU's Gross Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, SUPERVALU's Gross Margin % distribution charts can be found below:

* The bar in red indicates where SUPERVALU's Gross Margin % falls into.



SUPERVALU Gross Margin % Calculation

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

SUPERVALU's Gross Margin for the fiscal year that ended in Feb. 2018 is calculated as

Gross Margin % (A: Feb. 2018 )=Gross Profit (A: Feb. 2018 ) / Revenue (A: Feb. 2018 )
=1451 / 14157
=(Revenue - Cost of Goods Sold) / Revenue
=(14157 - 12706) / 14157
=10.25 %

SUPERVALU's Gross Margin for the quarter that ended in Aug. 2018 is calculated as


Gross Margin % (Q: Aug. 2018 )=Gross Profit (Q: Aug. 2018 ) / Revenue (Q: Aug. 2018 )
=294 / 3512
=(Revenue - Cost of Goods Sold) / Revenue
=(3512 - 3218) / 3512
=8.37 %

* 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.


SUPERVALU  (NYSE:SVU) 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

SUPERVALU had a gross margin of 8.37% for the quarter that ended in Aug. 2018 => 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.


SUPERVALU Gross Margin % Related Terms

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


SUPERVALU (SUPERVALU) Business Description

Traded in Other Exchanges
N/A
Address
Supervalu is a U.S.-based company that consists of two segments: wholesale and retail. The wholesale segment provides wholesale distribution and logistics services to independent retail customers. The retail segment operates through region-based banners, including Cub Foods, Shoppers Food & Pharmacy, Shop 'n Save, Farm Fresh, and Hornbacher's, along with a few Rainbow and County Market stores. The company provides a broad range of goods, such as grocery, general merchandise, pharmacy, and home, health, and beauty care. The company focuses its business in the domestic market.
Executives
Mathew Pendo director C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Frank A Savage director 7075 FLYING CLOUD DRIVE, EDEN PRAIRIE MN 55344
De Luzuriaga Francesca Ruiz director C/O OFFICE DEPOT, INC., 6600 NORTH MILITARY TRAIL, BOCA RATON, FL X1 33496
Irwin Cohen director BARBARA BUISMAN 11840 VALLEY VIEW ROAD EDEN PRAIREI MN 55344
Philip L Francis director AT HOME GROUP INC., 1600 EAST PLANO PARKWAY, PLANO TX 75074
Mary A Winston director 557 BROADWAY, C/O SCHOLASTIC CORP, NEW YORK NY 10012
David William Johnson officer: VP Controller - CAO 11840 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55344
Donald R Chappel director 600 PEACHTREE STREET N.E.,, 55TH FLOOR, ATLANTA GA 30308
Eric G Johnson director BALDWIN RICHARDSON FOODS CO, 20201 S LAGRANGE RD, FRANKFORT IL 60423
Susan S Grafton officer: SVP Chief Accounting Officer 11840 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55397
Bruce H Besanko officer: EVP Chief Oper Officer and CFO N56 W17000 RIDGEWOOD DRIVE, MENOMONEE FALLS WI 53051
Karla C Robertson officer: EVP General Counsel 11840 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55344
Sam K Duncan director, officer: Advisor to the Board 11840 VALLEY VIEW ROAD, EDEN PRAIRIE MN 55344
Matthew E Rubel director 3231 SE SIXTH AVENUE, TOPEKA KS 66607
Jana Partners Llc 10 percent owner 767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153

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