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Lulu Retail HoldingsADX:LULU 19 Gross Margin % is 22.24% as of Mar. 2026, which is 3% below its 10-year median of 22.98. GuruFocus rates ADX:LULU with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Lulu Retail Holdings ranks worse than 73.41% on this metric.
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
Lulu Retail Holdings had a gross margin of 22.24% for the quarter that ended in Mar. 2026 => 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.
Lulu Retail Holdings Gross Margin % Related Terms
Lulu Retail Holdings Gross Margin % Historical Data
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The historical data trend for Lulu Retail 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.
For the Department Stores subindustry, Lulu Retail 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.
Lulu Retail Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lulu Retail Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lulu Retail 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.
Lulu Retail Holdings (ADX:LULU) has a Gross Margin % of 22.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lulu Retail Holdings and its competitors. This is near median its historical median of 22.98. Over the past decade, Lulu Retail Holdings' Gross Margin % has ranged from 22.17 to 23.16. According to the industry distribution chart, Lulu Retail Holdings ranks #820 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 73.4%.
Is Lulu Retail Holdings' Gross Margin % too high?
Lulu Retail Holdings' current Gross Margin % of 22.24% is near median its 10-year median of 22.98. Over the past 10 years, this metric has ranged from a low of 22.17 to a high of 23.16. The Retail - Cyclical industry median Gross Margin % is 36.29. Lulu Retail Holdings' value of 22.24% is 38.7% below this industry median. Based on the distribution chart, Lulu Retail Holdings ranks #820 out of 1117 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Lulu Retail Holdings has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Lulu Retail Holdings' Gross Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Lulu Retail Holdings ranks #820 out of 1117 companies for Gross Margin %. This places Lulu Retail Holdings in the lower half of its industry. The industry median Gross Margin % is 36.29. Lulu Retail Holdings' value of 22.24% is 38.7% below this benchmark. Historically, Lulu Retail Holdings' own Gross Margin % has ranged from 22.17 to 23.16 over the past decade. While the company's 10-year median is 22.98 vs. the industry median of 36.29, Lulu Retail Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.29, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lulu Retail Holdings's current Gross Margin % of 22.24% is 38.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Lulu Retail Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lulu Retail Holdings's current Gross Margin % is 22.24%, which is near median its own 10-year median of 22.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lulu Retail Holdings stock overvalued right now?
Lulu Retail Holdings (ADX:LULU) has a current Gross Margin % of 22.24%. The current Gross Margin % is 22.24%, which is near median its 10-year median of 22.98 and 38.7% below the Retail - Cyclical industry median of 36.29. Lulu Retail Holdings' overall GF Score™ is 19/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Lulu Retail Holdings (ADX:LULU), the current Gross Margin % is 22.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Lulu Retail Holdings PLC is a full-line retailer with stores in all GCC countries (pan-GCC retailer) by selling space, with sales (retail sales value), and the number of stores. The Group operates retail stores under the LuLu brand in the UAE, the KSA, Oman, Qatar, Kuwait, Bahrain, and other countries. It has an omnichannel presence in the form of three formats of brick-and-mortar stores catering to various shopping occasions: hypermarkets (one-stop shop), express stores (everyday shopping), and mini markets (grab and go). Additionally, the Group has an e-commerce presence through its website and mobile application, supported by a partnership with Amazon in the UAE. Its reportable segments are: UAE, which generates the maximum revenue, Qatar, KSA, Oman, and Kuwait.
19GF Score
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