Nu Skin Enterprises Inc gross margin has been in long-term decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Nu Skin Enterprises's Gross Margin % or its related term are showing as below:
NUS'
s Gross Margin % Range Over the Past 10 Years
Min: 68.93 Med: 76.16 Max: 81.38
Current: 70.71
During the past 13 years, the highestGross Margin % of Nu Skin Enterprises was 81.38%. The lowest was 68.93%. And the median was 76.16%.
NUS's Gross Margin % is ranked better than 94.73% of 1840
companies
in the Consumer Packaged Goods industry
Industry Median: 25.825
vs NUS: 70.71
Nu Skin Enterprises had a gross margin of 70.08% for the quarter that ended in Sep. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Nu Skin Enterprises was -1.90% per year.
Nu Skin Enterprises Gross Margin % Historical Data
The historical data trend for Nu Skin Enterprises'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 Nu Skin Enterprises's Gross Margin %
For the Household & Personal Products subindustry, Nu Skin Enterprises'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.
Nu Skin Enterprises's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nu Skin Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nu Skin Enterprises'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.
Nu Skin Enterprises (NYSE:NUS) 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
Nu Skin Enterprises had a gross margin of 70.08% for the quarter that ended in Sep. 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.
Nu Skin Enterprises Gross Margin % Related Terms
Thank you for viewing the detailed overview of Nu Skin Enterprises's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Nu Skin Enterprises Inc is a health and beauty direct-selling company. It has two primary product categories: beauty products and wellness products. The company develops and distributes nutritional, weight-management products, and food supplements under the Nu Skin and Pharmanex brands, respectively. The company has operations internationally, in more than 50 countries across the Americas, Europe, and the Asia-Pacific.
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