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Luxxu GroupHKSE:01327 22 Gross Margin % is 35.03% as of Dec. 2025, which is 98% above its 10-year median of 17.69. GuruFocus rates HKSE:01327 with a GF Score™ of 22/100 and a GF Value™ of HK$0.24 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,121 Retail - Cyclical companies, Luxxu Group ranks better than 54.15% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Luxxu Group's Gross Profit for the
six
months ended in Dec. 2025 was HK$8.01 Mil. Luxxu Group's Revenue for the
six
months ended in Dec. 2025 was HK$22.88 Mil. Therefore, Luxxu Group's Gross Margin % for the quarter that ended in Dec. 2025 was 35.03%.
The historical rank and industry rank for Luxxu Group's Gross Margin % or its related term are showing as below:
HKSE:01327'
s Gross Margin % Range Over the Past 10 Years
Min: 3.42 Med: 17.69 Max: 42.82
Current: 38.12
During the past 13 years, the highestGross Margin % of Luxxu Group was 42.82%. The lowest was 3.42%. And the median was 17.69%.
HKSE:01327's Gross Margin % is ranked better than 54.15% of 1121
companies
in the Retail - Cyclical industry
Industry Median: 36.11
vs HKSE:01327: 38.12
Luxxu Group had a gross margin of 35.03% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Luxxu Group was 61.30% per year.
Luxxu Group (HKSE:01327) 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
Luxxu Group had a gross margin of 35.03% 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.
Luxxu Group Gross Margin % Related Terms
Luxxu Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Luxxu 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.
For the Luxury Goods subindustry, Luxxu 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.
Luxxu Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Luxxu Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Luxxu 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.
Luxxu Group (HKSE:01327) has a Gross Margin % of 35.03% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Luxxu Group and its competitors. This is 98% above median its historical median of 17.69. Over the past decade, Luxxu Group's Gross Margin % has ranged from 3.42 to 42.82. According to the industry distribution chart, Luxxu Group ranks #514 out of 1121 companies in the Retail - Cyclical industry, placing it in the top 45.9%.
Is Luxxu Group's Gross Margin % too high?
Luxxu Group's current Gross Margin % of 35.03% is 98% above median its 10-year median of 17.69. Over the past 10 years, this metric has ranged from a low of 3.42 to a high of 42.82. The Retail - Cyclical industry median Gross Margin % is 36.11. Luxxu Group's value of 35.03% is 3% below this industry median. Based on the distribution chart, Luxxu Group ranks #514 out of 1121 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Luxxu Group has a GF Score™ of 22/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luxxu Group's Gross Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Luxxu Group ranks #514 out of 1121 companies for Gross Margin %. This puts Luxxu Group in the upper half of its industry. The industry median Gross Margin % is 36.11. Luxxu Group's value of 35.03% is 3% below this benchmark. Historically, Luxxu Group's own Gross Margin % has ranged from 3.42 to 42.82 over the past decade. While the company's 10-year median is 17.69 vs. the industry median of 36.11, Luxxu Group has consistently been below 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 36.11, based on 1,121 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. Luxxu Group's current Gross Margin % of 35.03% is 3% below 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 Luxxu Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxxu Group's current Gross Margin % is 35.03%, which is 98% above median its own 10-year median of 17.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxxu Group stock overvalued right now?
Based on GuruFocus' analysis, Luxxu Group (HKSE:01327) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$1.65 — trading 587.5% above its estimated fair value. The current Gross Margin % is 35.03%, which is 98% above median its 10-year median of 17.69 and 3% below the Retail - Cyclical industry median of 36.11. Luxxu Group's overall GF Score™ is 22/100 with 8 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 Luxxu Group (HKSE:01327), the current Gross Margin % is 35.03% 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 Luxxu Group (HKSE:01327) Overvalued in 2026?
Based on GuruFocus' analysis, Luxxu Group stock appears to be overvalued.
The current stock price of HK$1.65 is trading 587.5% above its estimated GF Value™ of HK$0.24.
GuruFocus considers Luxxu Group to be Significantly Overvalued.
Key valuation signals for HKSE:01327:
Gross Margin %: 35.03% (98% above median its 10-year median of 17.69)
GF Value™: HK$0.24 vs. price of HK$1.65 (587.5% above fair value)
Industry Position: 3% below the Retail - Cyclical median (#514 of 1121)
No single metric tells the full story. See the HKSE:01327 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luxxu Group Ltd is principally engaged into the manufacture and sales of own-branded watches and jewelleries, including but not limited to diamond watches, tourbillon watches and luxury jewellery accessories, original equipment manufacturer (OEM) watches and third-party watches; and provision of exhibition services. The company has two segment manufacturing, trading and retailing business of branded watches and jewellery accessories; and assisting customers to hold exhibition. The company generates majority of revenue from Branded watches and jewellery accessories segment. The company has presence in Hong Kong, the PRC; and The PRC, excluding Hong Kong. The company generates majority of revenue from The PRC, excluding Hong Kong.
22GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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