KMD BrandsKTHUD +0.01%40 Gross Margin % is 56.29% as of Jan. 2026, which is 4% below its 10-year median of 58.59. GuruFocus rates KTHUD with a GF Score™ of 40/100 and a GF Value™ of $3.46 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, KMD Brands ranks better than 83.01% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. KMD Brands's Gross Profit for the
six
months ended in Jan. 2026 was $164.6 Mil. KMD Brands's Revenue for the
six
months ended in Jan. 2026 was $292.3 Mil. Therefore, KMD Brands's Gross Margin % for the quarter that ended in Jan. 2026 was 56.29%.
The historical rank and industry rank for KMD Brands's Gross Margin % or its related term are showing as below:
KTHUD'
s Gross Margin % Range Over the Past 10 Years
Min: 55.31 Med: 58.59 Max: 63.42
Current: 55.31
During the past 13 years, the highestGross Margin % of KMD Brands was 63.42%. The lowest was 55.31%. And the median was 58.59%.
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
KMD Brands had a gross margin of 56.29% for the quarter that ended in Jan. 2026 => 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.
KMD Brands Gross Margin % Related Terms
KMD Brands Gross Margin % Historical Data
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The historical data trend for KMD Brands'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 Apparel Manufacturing subindustry, KMD Brands'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.
KMD Brands Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, KMD Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where KMD Brands'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.
KMD Brands (KTHUD) has a Gross Margin % of 56.29% as of Jan. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on KMD Brands and its competitors. This is near median its historical median of 58.59. Over the past decade, KMD Brands' Gross Margin % has ranged from 55.31 to 63.42. According to the industry distribution chart, KMD Brands ranks #174 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 17%.
Is KMD Brands' Gross Margin % too high?
KMD Brands' current Gross Margin % of 56.29% is near median its 10-year median of 58.59. Over the past 10 years, this metric has ranged from a low of 55.31 to a high of 63.42. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.42. KMD Brands' value of 56.29% is 98.1% above this industry median. Based on the distribution chart, KMD Brands ranks #174 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, KMD Brands has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does KMD Brands' Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, KMD Brands ranks #174 out of 1024 companies for Gross Margin %. This places KMD Brands in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.42. KMD Brands' value of 56.29% is 98.1% above this benchmark. Historically, KMD Brands' own Gross Margin % has ranged from 55.31 to 63.42 over the past decade. While the company's 10-year median is 58.59 vs. the industry median of 28.42, KMD Brands 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.42, based on 1,024 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. KMD Brands's current Gross Margin % of 56.29% is 98.1% 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 KMD Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KMD Brands's current Gross Margin % is 56.29%, which is near median its own 10-year median of 58.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KMD Brands stock overvalued right now?
Based on GuruFocus' analysis, KMD Brands (KTHUD) is currently considered Possible Value Trap. The stock's GF Value™ is $3.46, compared to a current price of $0.94 — trading 72.9% below its estimated fair value. The current Gross Margin % is 56.29%, which is near median its 10-year median of 58.59 and 98.1% above the Manufacturing - Apparel & Accessories industry median of 28.42. KMD Brands' overall GF Score™ is 40/100 with 3 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 KMD Brands (KTHUD), the current Gross Margin % is 56.29% as of Jan. 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.
Is KMD Brands (KTHUD) Overvalued in 2026?
Based on GuruFocus' analysis, KMD Brands stock appears to be undervalued.
The current stock price of $0.94 is trading 72.9% below its estimated GF Value™ of $3.46.
GuruFocus considers KMD Brands to be Possible Value Trap.
Key valuation signals for KTHUD:
Gross Margin %: 56.29% (near median its 10-year median of 58.59)
GF Value™: $3.46 vs. price of $0.94 (72.9% below fair value)
Industry Position: 98.1% above the Manufacturing - Apparel & Accessories median (#174 of 1024)
No single metric tells the full story. See the KTHUD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
KMD Brands Ltd is a designer, marketer, retailer, and wholesaler of apparel, footwear, and equipment for surfing and the outdoors. The company operates through three brands including Kathmandu, which is a designer, retailer, and wholesaler of apparel footwear, and equipment for outdoor travel and adventure; Rip Curl, which is a designer, manufacturer, wholesaler and retailer of surfing equipment and apparel; and Oboz, which is a designer, wholesaler and online retailer of outdoor footwear. The company generates the majority of its revenue from the Kathmandu segment.
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