Aritzia (FRA:280) Gross Margin % : 38.31% (As of Feb. 2024)

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What is Aritzia Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Aritzia's Gross Profit for the three months ended in Feb. 2024 was €179 Mil. Aritzia's Revenue for the three months ended in Feb. 2024 was €468 Mil. Therefore, Aritzia's Gross Margin % for the quarter that ended in Feb. 2024 was 38.31%.

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

FRA:280' s Gross Margin % Range Over the Past 10 Years
Min: 36.45 Med: 39.49 Max: 43.82
Current: 38.54

During the past 11 years, the highest Gross Margin % of Aritzia was 43.82%. The lowest was 36.45%. And the median was 39.49%.

FRA:280's Gross Margin % is ranked better than
53.89% of 1093 companies
in the Retail - Cyclical industry
Industry Median: 36.51 vs FRA:280: 38.54

Aritzia had a gross margin of 38.31% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Aritzia was 0.40% per year.

Aritzia Gross Margin % Historical Data

The historical data trend for Aritzia'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.

Aritzia Gross Margin % Chart

Aritzia Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Gross Margin %

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41.14

36.45

43.82

41.63

38.54

Aritzia Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															37.98	38.89	34.98	41.46	38.31

Competitive Comparison of Aritzia's Gross Margin %

For the Apparel Retail subindustry, Aritzia'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.

Aritzia's Gross Margin % Distribution in the Retail - Cyclical Industry

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

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

Aritzia Gross Margin % Calculation

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

Aritzia's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Gross Margin % (A: Feb. 2024 )	=	Gross Profit (A: Feb. 2024 )	/	Revenue (A: Feb. 2024 )
	=	617.3	/	1601.547
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1601.547 - 984.247)	/	1601.547
	=	38.54 %

Aritzia's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	179.4	/	468.286
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(468.286 - 288.896)	/	468.286
	=	38.31 %

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.

Aritzia (FRA:280) 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

Aritzia had a gross margin of 38.31% for the quarter that ended in Feb. 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.

Aritzia Gross Margin % Related Terms

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Aritzia (FRA:280) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Aritzia Inc (FRA:280) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

ATZAF:USA 280:Germany ATZ:Canada

Address

611 Alexander Street, Suite 118, Vancouver, BC, CAN, V6A 1E1

Website

https://www.aritzia.com

Aritzia Inc is an integrated design house of exclusive fashion brands. It designs apparel and accessories for its collection of exclusive brands and sells them under the Aritzia banner. The category of products offered by the firm is blouses, T-shirts, pants, dresses, sweaters, jackets and coats, skirts, shorts, jumpsuits, and accessories. The Company reports as a single segment and includes all sales channels accessed by the Company's clients, including sales through the Company's eCommerce website and sales at the Company's boutiques. Its geographical segments include Canada and the United States. The company generates the majority of its revenue from Retail, followed by eCommerce.

Aritzia (FRA:280) Headlines

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