Gross Margin % is calculated as gross profit divided by its revenue. Shiseido Co's Gross Profit for the
three
months ended in Dec. 2023 was $1,307 Mil. Shiseido Co's Revenue for the
three
months ended in Dec. 2023 was $1,741 Mil. Therefore, Shiseido Co's Gross Margin % for the quarter that ended in Dec. 2023 was 75.07%.
Warning Sign:
Shiseido Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2%.
The historical rank and industry rank for Shiseido Co's Gross Margin % or its related term are showing as below:
SSDOY'
s Gross Margin % Range Over the Past 10 Years
Min: 69.36 Med: 74.93 Max: 78.82
Current: 73.52
During the past 13 years, the highestGross Margin % of Shiseido Co was 78.82%. The lowest was 69.36%. And the median was 74.93%.
SSDOY's Gross Margin % is ranked better than 95.96% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 24.96
vs SSDOY: 73.52
Shiseido Co had a gross margin of 75.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Shiseido Co was -2.00% per year.
Shiseido Co Gross Margin % Historical Data
The historical data trend for Shiseido Co'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 Shiseido Co's Gross Margin %
For the Household & Personal Products subindustry, Shiseido Co'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.
Shiseido Co's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Shiseido Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shiseido Co'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.
Shiseido Co (OTCPK:SSDOY) 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
Shiseido Co had a gross margin of 75.07% for the quarter that ended in Dec. 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.
Shiseido Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Shiseido Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Shiseido is a leading Japanese cosmetics manufacturer. Founded in 1872, the first Western-style pharmacy in Ginza, Tokyo, it is one of the oldest cosmetics companies globally. Shiseido's suite of 31 brands, including its namesake brand and luxury Clé de Peau Beauté, has an 9.3% share of Japan's beauty and personal care market and 18.3% share of Japan's premium segment according to Euromonitor. It is also ranked No. 3 after Estée Lauder and L'Oréal, with 7.6% market share in the global premium skincare space, thanks to a strong presence in China. China, Japan, and western markets each account for about 25% of sales, followed by 15% of travel retail, and 6% in Asia. Its distribution channels include department stores, drugstores, specialty retailers, travel retailers, and e-commerce.
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