Topsports International Holdings (FRA:8NF) 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
Topsports International Holdings had a gross margin of 35.32% for the quarter that ended in Feb. 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.
Topsports International Holdings Gross Margin % Related Terms
Topsports International Holdings Gross Margin % Historical Data
* 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.
Topsports International Holdings Gross Margin % Chart
FRA:8NF vs TJX, ROST, BURL: Gross Margin % Comparison
For the Apparel Retail subindustry, Topsports International 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.
Topsports International Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Topsports International Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Topsports International 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.
Topsports International Holdings (FRA:8NF) has a Gross Margin % of 35.32% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Topsports International Holdings and its competitors. This is 15% below median its historical median of 41.72. Over the past decade, Topsports International Holdings' Gross Margin % has ranged from 37.96 to 43.37. According to the industry distribution chart, Topsports International Holdings ranks #522 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 46.7%.
Is Topsports International Holdings' Gross Margin % too high?
Topsports International Holdings' current Gross Margin % of 35.32% is 15% below median its 10-year median of 41.72. Over the past 10 years, this metric has ranged from a low of 37.96 to a high of 43.37. The Retail - Cyclical industry median Gross Margin % is 36.25. Topsports International Holdings' value of 35.32% is 2.6% below this industry median. Based on the distribution chart, Topsports International Holdings ranks #522 out of 1117 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Topsports International Holdings has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Topsports International Holdings' Gross Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Topsports International Holdings ranks #522 out of 1117 companies for Gross Margin %. This puts Topsports International Holdings in the upper half of its industry. The industry median Gross Margin % is 36.25. Topsports International Holdings' value of 35.32% is 2.6% below this benchmark. Historically, Topsports International Holdings' own Gross Margin % has ranged from 37.96 to 43.37 over the past decade. While the company's 10-year median is 41.72 vs. the industry median of 36.25, Topsports International 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 36.25, 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. Topsports International Holdings's current Gross Margin % of 35.32% is 2.6% 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 Topsports International Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Topsports International Holdings's current Gross Margin % is 35.32%, which is 15% below median its own 10-year median of 41.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Topsports International Holdings stock overvalued right now?
Topsports International Holdings (FRA:8NF) has a current Gross Margin % of 35.32%. The stock's GF Value™ is €0.35, compared to a current price of €0.22 — trading 37% below its estimated fair value. The current Gross Margin % is 35.32%, which is 15% below median its 10-year median of 41.72 and 2.6% below the Retail - Cyclical industry median of 36.25. Topsports International Holdings' overall GF Score™ is 84/100 with 6 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 Topsports International Holdings (FRA:8NF), the current Gross Margin % is 35.32% as of Feb. 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.
Is Topsports International Holdings (FRA:8NF) Overvalued in 2026?
Based on GuruFocus' analysis, Topsports International Holdings stock appears to be undervalued.
The current stock price of €0.22 is trading 37% below its estimated GF Value™ of €0.35.
Key valuation signals for FRA:8NF:
Gross Margin %: 35.32% (15% below median its 10-year median of 41.72)
GF Value™: €0.35 vs. price of €0.22 (37% below fair value)
Industry Position: 2.6% below the Retail - Cyclical median (#522 of 1117)
No single metric tells the full story. See the FRA:8NF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Topsports International Holdings Business Description
Topsports is the largest sportswear retailer in China, generating the majority of its revenue from selling products of international sportswear brands. The business operates as an intermediary between brand owners and consumers. The firm operates more than 4,000 stores directly as of the end of fiscal 2026, and most of these single-brand stores have been opened under the names of sportswear brands that it partners with, such as Nike and Adidas. Topsports also has partnerships with sportswear brands such as Puma, Li-Ning, Asics, and The North Face. While most of Topsports' sales take place in stores, the firm also operates online shops under the Topsports brand on major e-commerce platforms such as Alibaba and JD.com.
84GF Score
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