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Ascena Retail Group Inc  (NAS:ASNA) Gross Margin %: 60.60% (As of Apr. 2017)

Gross Margin % is calculated as gross profit divided by its revenue. Ascena Retail Group Inc's Gross Profit for the three months ended in Apr. 2017 was $948 Mil. Ascena Retail Group Inc's Revenue for the three months ended in Apr. 2017 was $1,565 Mil. Therefore, Ascena Retail Group Inc's Gross Margin % for the quarter that ended in Apr. 2017 was 60.60%.


NAS:ASNA' s Gross Margin % Range Over the Past 10 Years
Min: 38.54   Max: 58.05
Current: 58.05

38.54
58.05

During the past 13 years, the highest Gross Margin % of Ascena Retail Group Inc was 58.05%. The lowest was 38.54%. And the median was 54.88%.

NAS:ASNA's Gross Margin % is ranked higher than
82% of the 942 Companies
in the Global industry.

( Industry Median: 35.13 vs. NAS:ASNA: 58.05 )

Ascena Retail Group Inc had a gross margin of 60.60% for the quarter that ended in Apr. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ascena Retail Group Inc was 0.00% per year.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Ascena Retail Group Inc Annual Data

Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.09 54.66 55.53 55.57 56.16

Ascena Retail Group Inc Quarterly Data

Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 60.91 57.46 60.41 54.10 60.60

Competitive Comparison
* 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.


Calculation

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

Ascena Retail Group Inc's Gross Margin for the fiscal year that ended in Jul. 2016 is calculated as

Gross Margin % (A: Jul. 2016 )=Gross Profit (A: Jul. 2016 ) / Revenue (A: Jul. 2016 )
=3928.7 / 6995.4
=(Revenue - Cost of Goods Sold) / Revenue
=(6995.4 - 3066.7) / 6995.4
=56.16 %

Ascena Retail Group Inc's Gross Margin for the quarter that ended in Apr. 2017 is calculated as


Gross Margin % (Q: Apr. 2017 )=Gross Profit (Q: Apr. 2017 ) / Revenue (Q: Apr. 2017 )
=-616.7 / 1565.1
=(Revenue - Cost of Goods Sold) / Revenue
=(1565.1 - 616.7) / 1565.1
=60.60 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.


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

Ascena Retail Group Inc had a gross margin of 60.60% for the quarter that ended in Apr. 2017 => 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.


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