Woolworths GroupFRA:WWR +1.10%76 Gross Margin % is 27.38% as of Dec. 2025, which is 5% below its 10-year median of 28.82. GuruFocus rates FRA:WWR with a GF Score™ of 76/100 and a GF Value™ of €20.92 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 303 Retail - Defensive companies, Woolworths Group ranks better than 61.72% on this metric.
Woolworths Group Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Woolworths Group's Gross Margin % or its related term are showing as below:
FRA:WWR'
s Gross Margin % Range Over the Past 10 Years
Min: 26.71 Med: 28.82 Max: 29.65
Current: 27.33
During the past 13 years, the highestGross Margin % of Woolworths Group was 29.65%. The lowest was 26.71%. And the median was 28.82%.
FRA:WWR's Gross Margin % is ranked better than 61.72% of 303
companies
in the Retail - Defensive industry
Industry Median: 24.08
vs FRA:WWR: 27.33
Woolworths Group had a gross margin of 27.38% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Woolworths Group was -1.90% per year.
Woolworths Group (FRA:WWR) 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
Woolworths Group had a gross margin of 27.38% 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.
Woolworths Group Gross Margin % Related Terms
Woolworths Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Woolworths Group'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:WWR vs KR, SFM, ACI: Gross Margin % Comparison
For the Grocery Stores subindustry, Woolworths Group'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.
Woolworths Group Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Woolworths Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Woolworths Group'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.
Woolworths Group (FRA:WWR) has a Gross Margin % of 27.38% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Woolworths Group and its competitors. This is near median its historical median of 28.82. Over the past decade, Woolworths Group's Gross Margin % has ranged from 26.71 to 29.65. According to the industry distribution chart, Woolworths Group ranks #116 out of 303 companies in the Retail - Defensive industry, placing it in the top 38.3%.
Is Woolworths Group's Gross Margin % too high?
Woolworths Group's current Gross Margin % of 27.38% is near median its 10-year median of 28.82. Over the past 10 years, this metric has ranged from a low of 26.71 to a high of 29.65. The Retail - Defensive industry median Gross Margin % is 24.08. Woolworths Group's value of 27.38% is 13.7% above this industry median. Based on the distribution chart, Woolworths Group ranks #116 out of 303 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Woolworths Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Woolworths Group's Gross Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Woolworths Group ranks #116 out of 303 companies for Gross Margin %. This puts Woolworths Group in the upper half of its industry. The industry median Gross Margin % is 24.08. Woolworths Group's value of 27.38% is 13.7% above this benchmark. Historically, Woolworths Group's own Gross Margin % has ranged from 26.71 to 29.65 over the past decade. While the company's 10-year median is 28.82 vs. the industry median of 24.08, Woolworths Group 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 - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 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. Woolworths Group's current Gross Margin % of 27.38% is 13.7% 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 Woolworths Group and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Woolworths Group's current Gross Margin % is 27.38%, which is near median its own 10-year median of 28.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Woolworths Group stock overvalued right now?
Based on GuruFocus' analysis, Woolworths Group (FRA:WWR) is currently considered Modestly Overvalued. The stock's GF Value™ is €20.92, compared to a current price of €24.29 — trading 16.1% above its estimated fair value. The current Gross Margin % is 27.38%, which is near median its 10-year median of 28.82 and 13.7% above the Retail - Defensive industry median of 24.08. Woolworths Group's overall GF Score™ is 76/100 with 11 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 Woolworths Group (FRA:WWR), the current Gross Margin % is 27.38% 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 Woolworths Group (FRA:WWR) Overvalued in 2026?
Based on GuruFocus' analysis, Woolworths Group stock appears to be overvalued.
The current stock price of €24.29 is trading 16.1% above its estimated GF Value™ of €20.92.
GuruFocus considers Woolworths Group to be Modestly Overvalued.
Key valuation signals for FRA:WWR:
Gross Margin %: 27.38% (near median its 10-year median of 28.82)
GF Value™: €20.92 vs. price of €24.29 (16.1% above fair value)
Industry Position: 13.7% above the Retail - Defensive median (#116 of 303)
No single metric tells the full story. See the FRA:WWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Woolworths is Australia's largest retailer. Operations include supermarkets in Australia and New Zealand, and discount department and pet stores. Woolworths also supplies businesses, like restaurants and cafes, following the acquisition of PFD Food Services. The Australian food division with its supermarkets constitutes the majority of group EBIT, followed by New Zealand supermarkets and PFD, while Big W is a minor contributor.
76GF Score
Get the complete analysis for FRA:WWR
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:WWR has been successfully added to your 
