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Luxottica Group SpA (Luxottica Group SpA) Gross Margin % : 62.69% (As of Jun. 2018)


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What is Luxottica Group SpA Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Luxottica Group SpA's Gross Profit for the six months ended in Jun. 2018 was $3,334 Mil. Luxottica Group SpA's Revenue for the six months ended in Jun. 2018 was $5,318 Mil. Therefore, Luxottica Group SpA's Gross Margin % for the quarter that ended in Jun. 2018 was 62.69%.


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


LUXTY's Gross Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 36.675
* Ranked among companies with meaningful Gross Margin % only.

Luxottica Group SpA had a gross margin of 62.69% for the quarter that ended in Jun. 2018 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Luxottica Group SpA was 0.00% per year.


Luxottica Group SpA Gross Margin % Historical Data

The historical data trend for Luxottica Group SpA'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.

Luxottica Group SpA Gross Margin % Chart

Luxottica Group SpA Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 65.48 66.35 67.91 63.42 62.37

Luxottica Group SpA Semi-Annual Data
Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
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 63.78 63.04 63.39 61.17 62.69

Competitive Comparison of Luxottica Group SpA's Gross Margin %

For the Apparel Retail subindustry, Luxottica Group SpA'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.


Luxottica Group SpA's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Luxottica Group SpA's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Luxottica Group SpA's Gross Margin % falls into.



Luxottica Group SpA Gross Margin % Calculation

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

Luxottica Group SpA's Gross Margin for the fiscal year that ended in Dec. 2017 is calculated as

Gross Margin % (A: Dec. 2017 )=Gross Profit (A: Dec. 2017 ) / Revenue (A: Dec. 2017 )
=6758.8 / 10837.031
=(Revenue - Cost of Goods Sold) / Revenue
=(10837.031 - 4078.274) / 10837.031
=62.37 %

Luxottica Group SpA's Gross Margin for the quarter that ended in Jun. 2018 is calculated as


Gross Margin % (Q: Jun. 2018 )=Gross Profit (Q: Jun. 2018 ) / Revenue (Q: Jun. 2018 )
=3333.9 / 5318.396
=(Revenue - Cost of Goods Sold) / Revenue
=(5318.396 - 1984.505) / 5318.396
=62.69 %

* 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.


Luxottica Group SpA  (OTCPK:LUXTY) 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

Luxottica Group SpA had a gross margin of 62.69% for the quarter that ended in Jun. 2018 => 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.


Luxottica Group SpA Gross Margin % Related Terms

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Luxottica Group SpA (Luxottica Group SpA) Business Description

Traded in Other Exchanges
N/A
Address
Piazzale L. Cadorna, 3, Milan, ITA, 20123
Luxottica designs, manufactures, and distributes high-quality prescription eyewear, frames and sunglasses. The company markets owned brands, including Ray-Ban, Oakley, Revo, and Arnette, as well as licensed brands, including Coach, Prada, Kors, and Polo Ralph Lauren. Luxottica is North America's largest eyewear retailer, with over 4,600 stores, through its Sunglass Hut, LensCrafters, Pearle Vision, Target Optical, and Ilori brands. The company also operates retail chains in Asia, Australia, South America, and Israel, totalling over 7,000 doors.

Luxottica Group SpA (Luxottica Group SpA) Headlines

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