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Retail Estates (LTS:0FSO) Gross Margin % : 79.16% (As of Sep. 2023)


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What is Retail Estates Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Retail Estates's Gross Profit for the six months ended in Sep. 2023 was €59.0 Mil. Retail Estates's Revenue for the six months ended in Sep. 2023 was €74.5 Mil. Therefore, Retail Estates's Gross Margin % for the quarter that ended in Sep. 2023 was 79.16%.


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

LTS:0FSO' s Gross Margin % Range Over the Past 10 Years
Min: 78.18   Med: 82.71   Max: 84.33
Current: 78.18


During the past 13 years, the highest Gross Margin % of Retail Estates was 84.33%. The lowest was 78.18%. And the median was 82.71%.

LTS:0FSO's Gross Margin % is ranked better than
68.15% of 628 companies
in the REITs industry
Industry Median: 68.965 vs LTS:0FSO: 78.18

Retail Estates had a gross margin of 79.16% for the quarter that ended in Sep. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Retail Estates was -0.80% per year.


Retail Estates Gross Margin % Historical Data

The historical data trend for Retail Estates'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.

Retail Estates Gross Margin % Chart

Retail Estates Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 82.06 81.67 81.60 81.42 79.20

Retail Estates Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 82.24 80.62 81.38 77.17 79.16

Competitive Comparison of Retail Estates's Gross Margin %

For the REIT - Retail subindustry, Retail Estates'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.


Retail Estates's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Retail Estates's Gross Margin % distribution charts can be found below:

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



Retail Estates Gross Margin % Calculation

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

Retail Estates's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )=Gross Profit (A: Mar. 2023 ) / Revenue (A: Mar. 2023 )
=110 / 138.862
=(Revenue - Cost of Goods Sold) / Revenue
=(138.862 - 28.884) / 138.862
=79.20 %

Retail Estates's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=59 / 74.474
=(Revenue - Cost of Goods Sold) / Revenue
=(74.474 - 15.523) / 74.474
=79.16 %

* 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.


Retail Estates  (LTS:0FSO) 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

Retail Estates had a gross margin of 79.16% for the quarter that ended in Sep. 2023 => 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.


Retail Estates Gross Margin % Related Terms

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Retail Estates (LTS:0FSO) Business Description

Traded in Other Exchanges
Address
Industrielaan 6, Ternat, BEL, B-1740
Retail Estates SA is a real estate investment trust that invests mainly in retail properties located on the periphery of residential areas or along access roads to urban centers, mainly in the Flemish and Wallonia Regions of Belgium. The company buys these properties from third parties or builds and markets retail buildings for its account. It rents its properties in a structural state, with the furnishings, fittings, and maintenance left to the discretion of the tenants. Geographically, it derives a majority of its revenue in the form of rental income from Belgium.

Retail Estates (LTS:0FSO) Headlines

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