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Buckle Inc  (NYSE:BKE) Gross Profit: $378.4 Mil (TTM As of Jul. 2017)

Buckle Inc's gross profit for the three months ended in Jul. 2017 was $74.1 Mil. Buckle Inc's gross profit for the trailing twelve months (TTM) ended in Jul. 2017 was $378.4 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Buckle Inc's gross profit for the three months ended in Jul. 2017 was $74.1 Mil. Buckle Inc's Revenue for the three months ended in Jul. 2017 was $195.7 Mil. Therefore, Buckle Inc's Gross Margin % for the quarter that ended in Jul. 2017 was 37.89%.

Buckle Inc had a gross margin of 37.89% for the quarter that ended in Jul. 2017 => Competition eroding margins

During the past 13 years, the highest Gross Margin % of Buckle Inc was 44.60%. The lowest was 40.74%. And the median was 44.05%.

Warning Sign:

Buckle Inc gross margin has been in long term decline. The average rate of decline per year is -1.4%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Buckle Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 499.32 499.15 507.33 481.40 397.17

Buckle Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Gross Profit 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 Premium Member Only Premium Member Only Premium Member Only 79.88 96.87 125.68 81.72 74.14

Competitive Comparison
* 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.


Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Buckle Inc's Gross Profit for the fiscal year that ended in Jan. 2017 is calculated as

Gross Profit (A: Jan. 2017 )=Revenue - Cost of Goods Sold
=974.873 - 577.705
=397.2

Buckle Inc's Gross Profit for the quarter that ended in Jul. 2017 is calculated as

Gross Profit (Q: Jul. 2017 )=Revenue - Cost of Goods Sold
=195.65 - 121.511
=74.1

Gross Profit for the trailing twelve months (TTM) ended in Jul. 2017 was 96.874 (Oct. 2016 ) + 125.683 (Jan. 2017 ) + 81.717 (Apr. 2017 ) + 74.139 (Jul. 2017 ) = $378.4 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

Buckle Inc's Gross Margin % for the quarter that ended in Jul. 2017 is calculated as

Gross Margin % (Q: Jul. 2017 )=Gross Profit (Q: Jul. 2017 ) / Revenue (Q: Jul. 2017 )
=(Revenue - Cost of Goods Sold) / Revenue
=74.1 / 195.65
=37.89 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Buckle Inc had a gross margin of 37.89% for the quarter that ended in Jul. 2017 => Competition eroding margins


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