The historical rank and industry rank for Family Dollar Stores's Gross Margin % or its related term are showing as below:
FRA:FAY'
s Gross Margin % Range Over the Past 10 Years
Min: 32.9 Med: 34.1 Max: 35.69
Current: 33.55
During the past 13 years, the highestGross Margin % of Family Dollar Stores was 35.69%. The lowest was 32.90%. And the median was 34.10%.
FRA:FAY's Gross Margin % is not ranked
in the Retail - Defensive industry.
Industry Median: 22.78
vs FRA:FAY: 33.55
Family Dollar Stores had a gross margin of 34.57% for the quarter that ended in May. 2015 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Family Dollar Stores was -0.90% per year.
Family Dollar Stores Gross Margin % Historical Data
The historical data trend for Family Dollar Stores'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.
Competitive Comparison of Family Dollar Stores's Gross Margin %
For the Discount Stores subindustry, Family Dollar Stores'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.
Family Dollar Stores's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Family Dollar Stores's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Family Dollar Stores'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.
Family Dollar Stores (FRA:FAY) 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
Family Dollar Stores had a gross margin of 34.57% for the quarter that ended in May. 2015 => 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.
Family Dollar Stores Gross Margin % Related Terms
Thank you for viewing the detailed overview of Family Dollar Stores's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Family Dollar Stores (FRA:FAY) Business Description
Family Dollar Stores Inc was incorporated in November 1959. The Company provides consumers with a selection of competitively priced merchandise in convenient neighbourhood stores. Its merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. It classifies the combination of Home Products, Apparel and Accessories, and Seasonal and Electronics as Discretionary. It operates general merchandise retail discount stores in 46 states, serving the basic needs of customers primarily in the low- and middle-income brackets. The stores are supported by 11 distribution centers and one Store Support Center. It competes for sales and store locations in varying degrees with international, national, regional and local retailing establishments, other discount stores, department stores, variety stores, dollar stores, discount clothing stores, drug stores, grocery stores, convenience stores, outlet stores, warehouse stores and other stores. The Company's trademark includes Family Dollar and Family Dollar Stores. Its business is subject to federal, state, local, and international laws, rules, and regulations, such as state and local wage and hour laws, anti-corruption laws, import and export laws, unclaimed property laws, and many others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:FAY has been successfully added to your 