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Signature Eyewear (Signature Eyewear) Gross Margin % : 61.71% (As of Apr. 2011)


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What is Signature Eyewear Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Signature Eyewear's Gross Profit for the three months ended in Apr. 2011 was $2.78 Mil. Signature Eyewear's Revenue for the three months ended in Apr. 2011 was $4.51 Mil. Therefore, Signature Eyewear's Gross Margin % for the quarter that ended in Apr. 2011 was 61.71%.


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


SEYE's Gross Margin % is not ranked *
in the Medical Devices & Instruments industry.
Industry Median: 52.98
* Ranked among companies with meaningful Gross Margin % only.

Signature Eyewear had a gross margin of 61.71% for the quarter that ended in Apr. 2011 => Durable competitive advantage

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


Signature Eyewear Gross Margin % Historical Data

The historical data trend for Signature Eyewear'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.

Signature Eyewear Gross Margin % Chart

Signature Eyewear Annual Data
Trend Oct01 Oct02 Oct03 Oct04 Oct05 Oct06 Oct07 Oct08 Oct09 Oct10
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 65.10 63.93 64.24 64.14 63.35

Signature Eyewear Quarterly Data
Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11
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 62.84 65.88 61.95 59.28 61.71

Competitive Comparison of Signature Eyewear's Gross Margin %

For the Medical Instruments & Supplies subindustry, Signature Eyewear'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.


Signature Eyewear's Gross Margin % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Signature Eyewear's Gross Margin % distribution charts can be found below:

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



Signature Eyewear Gross Margin % Calculation

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

Signature Eyewear's Gross Margin for the fiscal year that ended in Oct. 2010 is calculated as

Gross Margin % (A: Oct. 2010 )=Gross Profit (A: Oct. 2010 ) / Revenue (A: Oct. 2010 )
=13.2 / 20.831
=(Revenue - Cost of Goods Sold) / Revenue
=(20.831 - 7.635) / 20.831
=63.35 %

Signature Eyewear's Gross Margin for the quarter that ended in Apr. 2011 is calculated as


Gross Margin % (Q: Apr. 2011 )=Gross Profit (Q: Apr. 2011 ) / Revenue (Q: Apr. 2011 )
=2.8 / 4.51
=(Revenue - Cost of Goods Sold) / Revenue
=(4.51 - 1.727) / 4.51
=61.71 %

* 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.


Signature Eyewear  (OTCPK:SEYE) 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

Signature Eyewear had a gross margin of 61.71% for the quarter that ended in Apr. 2011 => 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.


Signature Eyewear Gross Margin % Related Terms

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Signature Eyewear (Signature Eyewear) Business Description

Traded in Other Exchanges
N/A
Address
317 Isis Avenue 207, Inglewood, CA, USA, 90301
Signature Eyewear Inc designs, markets and distributes prescription eyeglass frames and sunwear under brand name licenses. Through its partnerships with Bobby Jones, Carmen Marc Valvo, Cutter & Buck, Dakota Smith, Hart Schaffner Marx, Hickey Freeman Laura Ashley, Laura Ashley Girls, Michael Stars, and Rough Justice, and the company brings quality products and distinct designs to the optical marketplace.

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