STU:S6M's Gross Margin % is ranked better than 69.38% of 307
companies
in the Retail - Defensive industry
Industry Median: 23.09
vs STU:S6M: 28.96
Seven & i Holdings Co had a gross margin of 29.60% for the quarter that ended in Nov. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Seven & i Holdings Co was -5.10% per year.
Seven & i Holdings Co Gross Margin % Historical Data
The historical data trend for Seven & i Holdings 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 Seven & i Holdings Co's Gross Margin %
For the Grocery Stores subindustry, Seven & i Holdings 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.
Seven & i Holdings Co's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Seven & i Holdings Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Seven & i Holdings 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.
Seven & i Holdings Co (STU:S6M) 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
Seven & i Holdings Co had a gross margin of 29.60% for the quarter that ended in Nov. 2024 => 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.
Seven & i Holdings Co Gross Margin % Related Terms
Thank you for viewing the detailed overview of Seven & i Holdings Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Seven & i Holdings operates 7-Eleven, the world's largest convenience store chain, with more than 84,000 stores, including nearly 49,000 operated by licensees globally. Convenience stores, mainly in Japan and North America, represent 86% of group sales (81% of operating revenue) and around 90% of operating profits. 7-Eleven Japan, the market leader in Japan's convenience store industry, has acquired 46% value share and 38% share in store count. 7-Eleven, the largest convenience store chain in the US, made a $21 billion acquisition of Speedway in 2020. The deal increased its total store count to more than 13,000. Other retail includes superstores and specialty retailers, both of which have low margins. The financial business, mainly ATM operations, is another key profit contributor.
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