HKSE:03709's Gross Margin % is ranked better than 96.09% of 1099
companies
in the Retail - Cyclical industry
Industry Median: 36.93
vs HKSE:03709: 75.80
EEKA Fashion Holdings had a gross margin of 76.30% for the quarter that ended in Jun. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for EEKA Fashion Holdings was 1.10% per year.
EEKA Fashion Holdings Gross Margin % Historical Data
The historical data trend for EEKA Fashion 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.
Competitive Comparison of EEKA Fashion Holdings's Gross Margin %
For the Apparel Retail subindustry, EEKA Fashion 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.
EEKA Fashion Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, EEKA Fashion Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EEKA Fashion 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.
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
EEKA Fashion Holdings had a gross margin of 76.30% for the quarter that ended in Jun. 2024 => Durable 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.
EEKA Fashion Holdings Gross Margin % Related Terms
Thank you for viewing the detailed overview of EEKA Fashion Holdings's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
EEKA Fashion Holdings Ltd is a Chinese company that manufactures and sells women's clothing. They have three high-end brands, namely Koradior, La Koradior, and Koradior Elsewhere, which cater to women aged between 30 and 45. They offer a wide range of products such as dresses, skirts, trousers, shirts, knitwear, vests, jackets, overcoats, scarves, and accessories. The company's primary activities include designing, retailing, and wholesaling women's wear in China. They mainly sell their products directly to customers through their retail stores but also have a presence on third-party e-commerce platforms and distributor-operated retail stores. The company generates nearly all of its revenue from sales in China.
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