THGFRA:HG0 35 Gross Margin % is 39.25% as of Dec. 2025, which is 9% below its 10-year median of 43.29. GuruFocus rates FRA:HG0 with a GF Score™ of 35/100 and a GF Value™ of €0.37 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,111 Retail - Cyclical companies, THG ranks better than 58.06% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. THG's Gross Profit for the
six
months ended in Dec. 2025 was €419 Mil. THG's Revenue for the
six
months ended in Dec. 2025 was €1,068 Mil. Therefore, THG's Gross Margin % for the quarter that ended in Dec. 2025 was 39.25%.
Warning Sign:
THG PLC gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for THG's Gross Margin % or its related term are showing as below:
FRA:HG0'
s Gross Margin % Range Over the Past 10 Years
Min: 39.3 Med: 43.29 Max: 45.59
Current: 40.05
During the past 9 years, the highestGross Margin % of THG was 45.59%. The lowest was 39.30%. And the median was 43.29%.
FRA:HG0's Gross Margin % is ranked better than 58.06% of 1111
companies
in the Retail - Cyclical industry
Industry Median: 36.37
vs FRA:HG0: 40.05
THG had a gross margin of 39.25% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for THG was -2.00% per year.
THG (FRA:HG0) 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
THG had a gross margin of 39.25% for the quarter that ended in Dec. 2025 => 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.
THG Gross Margin % Related Terms
THG Gross Margin % Historical Data
* Premium members only.
The historical data trend for THG'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.
FRA:HG0 vs AMZN, BABA, PDD: Gross Margin % Comparison
For the Internet Retail subindustry, THG'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.
THG Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, THG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where THG'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.
THG (FRA:HG0) has a Gross Margin % of 39.25% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on THG and its competitors. This is near median its historical median of 43.29. Over the past decade, THG's Gross Margin % has ranged from 39.30 to 45.59. According to the industry distribution chart, THG ranks #466 out of 1111 companies in the Retail - Cyclical industry, placing it in the top 41.9%.
Is THG's Gross Margin % too high?
THG's current Gross Margin % of 39.25% is near median its 10-year median of 43.29. Over the past 10 years, this metric has ranged from a low of 39.30 to a high of 45.59. The Retail - Cyclical industry median Gross Margin % is 36.37. THG's value of 39.25% is 7.9% above this industry median. Based on the distribution chart, THG ranks #466 out of 1111 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, THG has a GF Score™ of 35/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does THG's Gross Margin % compare to AMZN and BABA?
According to the Retail - Cyclical industry distribution chart, THG ranks #466 out of 1111 companies for Gross Margin %. This puts THG in the upper half of its industry. The industry median Gross Margin % is 36.37. THG's value of 39.25% is 7.9% above this benchmark. Historically, THG's own Gross Margin % has ranged from 39.30 to 45.59 over the past decade. While the company's 10-year median is 43.29 vs. the industry median of 36.37, THG has consistently been above 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 36.37, based on 1,111 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. THG's current Gross Margin % of 39.25% is 7.9% above 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 THG and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. THG's current Gross Margin % is 39.25%, which is near median its own 10-year median of 43.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is THG stock overvalued right now?
Based on GuruFocus' analysis, THG (FRA:HG0) is currently considered Fairly Valued. The stock's GF Value™ is €0.37, compared to a current price of €0.35 — trading 5.7% below its estimated fair value. The current Gross Margin % is 39.25%, which is near median its 10-year median of 43.29 and 7.9% above the Retail - Cyclical industry median of 36.37. THG's overall GF Score™ is 35/100 with 3 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 THG (FRA:HG0), the current Gross Margin % is 39.25% as of Dec. 2025. 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 THG (FRA:HG0) Overvalued in 2026?
Based on GuruFocus' analysis, THG stock appears to be undervalued.
The current stock price of €0.35 is trading 5.7% below its estimated GF Value™ of €0.37.
GuruFocus considers THG to be Fairly Valued.
Key valuation signals for FRA:HG0:
Gross Margin %: 39.25% (near median its 10-year median of 43.29)
GF Value™: €0.37 vs. price of €0.35 (5.7% below fair value)
Industry Position: 7.9% above the Retail - Cyclical median (#466 of 1111)
No single metric tells the full story. See the FRA:HG0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
THG PLC is a UK-based retailer and brand owner headquartered in Manchester, operating as a digital-first, vertically integrated consumer group across two core businesses. The Group follows a UK D2C model and is expanding into high-growth international markets and selective physical retail. Its operations comprise two segments: THG Beauty, the segment generating maximum revenue, is a digital-first brand owner, retailer and manufacturer in prestige beauty, with own brands in skincare, haircare and cosmetics and platforms such as Lookfantastic, Dermstore and Cult Beauty, and THG Nutrition, which includes the online sports nutrition brand Myprotein along with Myvegan, Myvitamins, MP Activewear and MPRO, supported by production facilities. The Group generates maximum revenue from the UK.
35GF Score
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