Rowe (ROWC) Gross Margin %: 33.55% (As of May. 2006)

What is Rowe Gross Margin %?

Rowe ROWC Gross Margin % is 33.55% as of May. 2006.

Gross Margin % is calculated as gross profit divided by its revenue. Rowe's Gross Profit for the three months ended in May. 2006 was $22.7 Mil. Rowe's Revenue for the three months ended in May. 2006 was $67.7 Mil. Therefore, Rowe's Gross Margin % for the quarter that ended in May. 2006 was 33.55%.

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

ROWC's Gross Margin % is not ranked ^*
in the Furnishings, Fixtures & Appliances industry.
Industry Median: 29.11
* Ranked among companies with meaningful Gross Margin % only.

Rowe had a gross margin of 33.55% for the quarter that ended in May. 2006 => Competition eroding margins

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

Rowe (OTCPK:ROWC) 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

Rowe had a gross margin of 33.55% for the quarter that ended in May. 2006 => Competition eroding margins

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.

Rowe Gross Margin % Related Terms

Rowe Gross Margin % Historical Data

* Premium members only.

The historical data trend for Rowe'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.

Rowe Gross Margin % Chart

Rowe Annual Data

Trend

Nov96

Nov97

Nov98

Nov99

Nov00

Nov01

Nov02

Nov03

Nov04

Nov05

Gross Margin %

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33.59

35.55

35.97

35.08

31.38

Rowe Quarterly Data
	Aug01	Nov01	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06
Gross Margin %	Get a 7-Day Free Trial															30.26	32.60	31.66	34.71	33.55

ROWC vs ADAD, PFWI, MJPI: Gross Margin % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Rowe'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.

Rowe Gross Margin % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Rowe's Gross Margin % distribution charts can be found below:

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

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Rowe Gross Margin % Calculation

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

Rowe's Gross Margin for the fiscal year that ended in Nov. 2005 is calculated as

Gross Margin % (A: Nov. 2005 )	=	Gross Profit (A: Nov. 2005 )	/	Revenue (A: Nov. 2005 )
	=	93.9	/	299.391
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(299.391 - 205.447)	/	299.391
	=	31.38 %

Rowe's Gross Margin for the quarter that ended in May. 2006 is calculated as

Gross Margin % (Q: May. 2006 )	=	Gross Profit (Q: May. 2006 )	/	Revenue (Q: May. 2006 )
	=	22.7	/	67.747
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(67.747 - 45.015)	/	67.747
	=	33.55 %

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.

Frequently Asked Questions Learn more about Gross Margin % →

What does a Gross Margin % of 33.55% mean?

Rowe (ROWC) has a Gross Margin % of 33.55% as of May. 2006. Gross margin is the ratio of total gross profit to net sales. View historical data on Rowe and its competitors.

Is Rowe's Gross Margin % too high?

Rowe's current Gross Margin % is 33.55%. The Furnishings, Fixtures & Appliances industry median Gross Margin % is 29.11. Rowe's value of 33.55% is 15.3% above this industry median.

How does Rowe's Gross Margin % compare to ADAD and PFWI?

Rowe's Gross Margin % of 33.55% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median Gross Margin % is 29.11. Rowe's value of 33.55% is 15.3% above this benchmark. 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 Furnishings, Fixtures & Appliances company?

The median Gross Margin % among Furnishings, Fixtures & Appliances companies is 29.11, based on 419 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. Rowe's current Gross Margin % of 33.55% is 15.3% 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 Rowe and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Gross Margin % is 29.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rowe's current Gross Margin % is 33.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Rowe stock overvalued right now?

Rowe (ROWC) has a current Gross Margin % of 33.55%. The current Gross Margin % is 33.55% and 15.3% above the Furnishings, Fixtures & Appliances industry median of 29.11. 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 Rowe (ROWC), the current Gross Margin % is 33.55% as of May. 2006. 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.

Rowe Business Description

Industry Consumer Cyclical Furnishings, Fixtures & Appliances

Comparable Companies ADAD PFWI MJPI LUVU STLY EFOI NVFY PTEFF FORK KVCPF FMAKF NTZ EDOLF LBY KSNIF OTSUF SNHLF LCUT BSET FLXS

Address 1650 Tysons Boulevard, Suite 710, McLean, VA, USA, 22102

Website http://www.rowecompanies.com

Rowe Companies is engaged in manufacturing upholstered furniture. Its products include sofas, sleeper sofas, loveseats, dining sets, rugs, and chairs.