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GOME Retail HoldingsHKSE:00493 Gross Margin % is -127.50% as of Jun. 2026. The stock has 5 warning signs investors should review. Among 1,116 Retail - Cyclical companies, GOME Retail Holdings ranks worse than 94.27% on this metric.
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
GOME Retail Holdings had a gross margin of -127.50% for the quarter that ended in Jun. 2026 => No sustainable competitive advantage
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.
GOME Retail Holdings Gross Margin % Related Terms
GOME Retail Holdings Gross Margin % Historical Data
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The historical data trend for GOME Retail Holdings'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.
HKSE:00493 vs CASY, WSM, ULTA: Gross Margin % Comparison
For the Specialty Retail subindustry, GOME Retail 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.
GOME Retail Holdings Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, GOME Retail Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where GOME Retail 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.
GOME Retail Holdings (HKSE:00493) has a Gross Margin % of -127.50% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on GOME Retail Holdings and its competitors. Over the past decade, GOME Retail Holdings' Gross Margin % has ranged from 4.65 to 26.93. According to the industry distribution chart, GOME Retail Holdings ranks #1052 out of 1116 companies in the Retail - Cyclical industry, placing it in the top 94.3%.
Is GOME Retail Holdings' Gross Margin % too high?
GOME Retail Holdings' current Gross Margin % is -127.50%. Over the past 10 years, this metric has ranged from a low of 4.65 to a high of 26.93. Based on the distribution chart, GOME Retail Holdings ranks #1052 out of 1116 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers.
How does GOME Retail Holdings' Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, GOME Retail Holdings ranks #1052 out of 1116 companies for Gross Margin %. This places GOME Retail Holdings in the lower half of its industry. The industry median Gross Margin % is 36.27. Historically, GOME Retail Holdings' own Gross Margin % has ranged from 4.65 to 26.93 over the past decade. 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 36.27, based on 1,116 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. 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 GOME Retail Holdings and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GOME Retail Holdings's current Gross Margin % is -127.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GOME Retail Holdings stock overvalued right now?
Based on GuruFocus' analysis, GOME Retail Holdings (HKSE:00493) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.02, compared to a current price of HK$0.01 — trading 50% below its estimated fair value. The current Gross Margin % is -127.50%. 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 GOME Retail Holdings (HKSE:00493), the current Gross Margin % is -127.50% as of Jun. 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.
GOME Retail Holdings Ltd is engaged in the operation and management of retail stores and an online sales network for electrical appliances, consumer electronic products, liquor products, and general merchandise. Additionally, it provides franchise and management services and commission-based services to franchised stores. Geographically, nearly all of the Group's revenue is derived from its customers in Mainland China.
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