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Zumiez (FRA:ZM3) Gross Margin % : 35.20% (As of Oct. 2024)


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What is Zumiez Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zumiez's Gross Profit for the three months ended in Oct. 2024 was €71.9 Mil. Zumiez's Revenue for the three months ended in Oct. 2024 was €204.2 Mil. Therefore, Zumiez's Gross Margin % for the quarter that ended in Oct. 2024 was 35.20%.

Warning Sign:

Zumiez Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

FRA:ZM3' s Gross Margin % Range Over the Past 10 Years
Min: 32.08   Med: 34.11   Max: 38.58
Current: 33.49


During the past 13 years, the highest Gross Margin % of Zumiez was 38.58%. The lowest was 32.08%. And the median was 34.11%.

FRA:ZM3's Gross Margin % is ranked worse than
56.11% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.88 vs FRA:ZM3: 33.49

Zumiez had a gross margin of 35.20% for the quarter that ended in Oct. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zumiez was -1.10% per year.


Zumiez Gross Margin % Historical Data

The historical data trend for Zumiez'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.

Zumiez Gross Margin % Chart

Zumiez Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.45 35.33 38.58 33.88 32.08

Zumiez Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.84 34.30 29.26 34.16 35.20

Competitive Comparison of Zumiez's Gross Margin %

For the Apparel Retail subindustry, Zumiez'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.


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

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

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



Zumiez Gross Margin % Calculation

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

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

Gross Margin % (A: Jan. 2024 )=Gross Profit (A: Jan. 2024 ) / Revenue (A: Jan. 2024 )
=257.9 / 803.696
=(Revenue - Cost of Goods Sold) / Revenue
=(803.696 - 545.839) / 803.696
=32.08 %

Zumiez's Gross Margin for the quarter that ended in Oct. 2024 is calculated as


Gross Margin % (Q: Oct. 2024 )=Gross Profit (Q: Oct. 2024 ) / Revenue (Q: Oct. 2024 )
=71.9 / 204.232
=(Revenue - Cost of Goods Sold) / Revenue
=(204.232 - 132.34) / 204.232
=35.20 %

* 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.


Zumiez  (FRA:ZM3) 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

Zumiez had a gross margin of 35.20% for the quarter that ended in Oct. 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.


Zumiez Gross Margin % Related Terms

Thank you for viewing the detailed overview of Zumiez's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Zumiez Business Description

Traded in Other Exchanges
Address
4001 204th Street SW, Lynnwood, WA, USA, 98036
Zumiez Inc is a United-States-based specialty retailer engaged in the sale of apparel, footwear, accessories, and hard goods. The company provides merchandise with cultural elements coming from fashion, music, art from action sports, streetwear, and other lifestyles. The company operates under the brands Zumiez, Fast Times, and Blue Tomato, and through both physical stores and websites. The majority of the company's stores are located in the U.S., with the rest in Canada, Australia, and Europe. The U.S. market contributes to the majority of the company's revenue.

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