GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Albertsons Companies Inc (NYSE:ACI) » Definitions » Gross Margin %

Albertsons (Albertsons) Gross Margin %

: 28.01% (As of Nov. 2023)
View and export this data going back to 2020. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Albertsons's Gross Profit for the three months ended in Nov. 2023 was $5,197 Mil. Albertsons's Revenue for the three months ended in Nov. 2023 was $18,557 Mil. Therefore, Albertsons's Gross Margin % for the quarter that ended in Nov. 2023 was 28.01%.


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

ACI' s Gross Margin % Range Over the Past 10 Years
Min: 26.92   Med: 27.9   Max: 29.29
Current: 27.77


During the past 11 years, the highest Gross Margin % of Albertsons was 29.29%. The lowest was 26.92%. And the median was 27.90%.

ACI's Gross Margin % is ranked better than
66.88% of 311 companies
in the Retail - Defensive industry
Industry Median: 22.74 vs ACI: 27.77

Albertsons had a gross margin of 28.01% for the quarter that ended in Nov. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Albertsons was 0.80% per year.


Albertsons Gross Margin % Historical Data

The historical data trend for Albertsons'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.

Albertsons Annual Data
Trend Feb14 Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.91 28.17 29.29 28.83 28.02

Albertsons Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 28.21 27.84 27.70 27.56 28.01

Competitive Comparison

For the Grocery Stores subindustry, Albertsons'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.


Albertsons Gross Margin % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Gross Margin % distribution charts can be found below:

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



Albertsons Gross Margin % Calculation

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

Albertsons's Gross Margin for the fiscal year that ended in Feb. 2023 is calculated as

Gross Margin % (A: Feb. 2023 )=Gross Profit (A: Feb. 2023 ) / Revenue (A: Feb. 2023 )
=21755.6 / 77649.7
=(Revenue - Cost of Goods Sold) / Revenue
=(77649.7 - 55894.1) / 77649.7
=28.02 %

Albertsons's Gross Margin for the quarter that ended in Nov. 2023 is calculated as


Gross Margin % (Q: Nov. 2023 )=Gross Profit (Q: Nov. 2023 ) / Revenue (Q: Nov. 2023 )
=5197.3 / 18557.3
=(Revenue - Cost of Goods Sold) / Revenue
=(18557.3 - 13360) / 18557.3
=28.01 %

* 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.


Albertsons  (NYSE:ACI) 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

Albertsons had a gross margin of 28.01% for the quarter that ended in Nov. 2023 => 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.


Albertsons Gross Margin % Related Terms

Thank you for viewing the detailed overview of Albertsons's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Albertsons (Albertsons) Business Description

Traded in Other Exchanges
Address
250 Parkcenter Boulevard, Boise, ID, USA, 83706
Albertsons is the second-largest conventional grocer in America, operating 2,271 stores under 24 banners in 34 states (as of the end of fiscal 2022). Around 75% of stores have pharmacies, while nearly 20% also sell fuel. Albertsons has a significant private-label operation, accounting for around 25% of sales (excluding fuel). While its own brand assortment is mainly manufactured by third parties, Albertsons operates 19 food production plants (as of the end of fiscal 2022). Albertsons is a top two grocer in two thirds of its major markets (as of early 2022, according to company data), and virtually all of its sales come from the United States. Narrow-moat Kroger has offered to acquire Albertsons in a $25 billion deal; if the transaction is approved by regulators, it should close in 2024.
Executives
Thomas M Moriarty officer: EVP General Counsel & CPO 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417
Robert Bruce Larson officer: Chief Accounting Officer 3103 S OLD HICKORY, BOISE ID 83712
Klaff Realty Lp 10 percent owner, other: See Remarks 180 N. MICHIGAN AVE, SUITE 300, CHICAGO IL 60601
Mohammad Omer Gajial officer: EVP, Pharmacy & Health 250 E. PARKCENTER BLVD., BOISE ID 83706
Jubilee Abs Holding Llc other: See Footnote (2) 4300 E. FIFTH AVE., COLUMBUS OH 43219
Kimco Realty Corp other: See Remarks 500 NORTH BROADWAY, SUITE 201, JERICHO NY 11753
Susan Morris officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Evan Rainwater officer: EVP, Supp Chain&Manufacturing 250 E. PARKCENTER BLVD., BOISE ID 83706
Chris Rupp officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Anuj Dhanda officer: See Remarks ALBERTSONS COMPANIES, INC., 250 PARKCENTER BOULEVARD, BOISE ID 83706
Sharon Mccollam officer: President & CFO C/O OFFICEMAX INCORPORATED, 263 SHUMAN BLVD., NAPERVILLE IL 60563
Jennifer Saenz officer: Chief Marketing Officer 250 E. PARKCENTER BLVD., BOISE ID 83706
Chan Galbato director 191 E NORTH AVENUE, CAROL STREAM IL 60188
Stone West Mary E director C/O HASBRO, INC., 1011 NEWPORT AVENUE, PAWTUCKET RI 02861
Shant Babikian director C/O HPS INVESTMENT PARTNERS, LLC, 40 WEST 57TH STREET, 33RD FLOO NY 10019