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Avon Products (Avon Products) Gross Margin % : 59.63% (As of Mar. 2023)


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What is Avon Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Avon Products's Gross Profit for the three months ended in Mar. 2023 was $352 Mil. Avon Products's Revenue for the three months ended in Mar. 2023 was $591 Mil. Therefore, Avon Products's Gross Margin % for the quarter that ended in Mar. 2023 was 59.63%.

Warning Sign:

Avon Products Inc gross margin has been in long-term decline. The average rate of decline per year is -1.4%.


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

AVP' s Gross Margin % Range Over the Past 10 Years
Min: 56.02   Med: 59.06   Max: 62.66
Current: 57.46


During the past 13 years, the highest Gross Margin % of Avon Products was 62.66%. The lowest was 56.02%. And the median was 59.06%.

AVP's Gross Margin % is not ranked
in the Consumer Packaged Goods industry.
Industry Median: 25.07 vs AVP: 57.46

Avon Products had a gross margin of 59.63% for the quarter that ended in Mar. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Avon Products was -1.40% per year.


Avon Products Gross Margin % Historical Data

The historical data trend for Avon Products'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.

Avon Products Gross Margin % Chart

Avon Products Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 57.57 57.80 56.02 57.07 56.43

Avon Products Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
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 56.04 56.58 55.46 57.52 59.63

Competitive Comparison of Avon Products's Gross Margin %

For the Household & Personal Products subindustry, Avon Products'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.


Avon Products's Gross Margin % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Avon Products's Gross Margin % distribution charts can be found below:

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



Avon Products Gross Margin % Calculation

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

Avon Products's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=1562.6 / 2769.2
=(Revenue - Cost of Goods Sold) / Revenue
=(2769.2 - 1206.6) / 2769.2
=56.43 %

Avon Products's Gross Margin for the quarter that ended in Mar. 2023 is calculated as


Gross Margin % (Q: Mar. 2023 )=Gross Profit (Q: Mar. 2023 ) / Revenue (Q: Mar. 2023 )
=352.1 / 590.5
=(Revenue - Cost of Goods Sold) / Revenue
=(590.5 - 238.4) / 590.5
=59.63 %

* 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.


Avon Products  (NYSE:AVP) 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

Avon Products had a gross margin of 59.63% for the quarter that ended in Mar. 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.


Avon Products Gross Margin % Related Terms

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


Avon Products (Avon Products) Business Description

Traded in Other Exchanges
N/A
Address
Nunn Mills Road, Lancaster House, Northampton, GBR, NN1 5PA
Avon Products Inc is a firm which manufactures and sells beauty and related products. Avon's product mix consists of beauty (cosmetics, fragrances, and skin care), fashion (accessories and apparel), and home (home products and gifts). Generating, a majority of its revenue from Beauty. The company's geographic operating segments includes Avon International and Avon Latin America.
Executives
Gustavo Arnal officer: Executive Vice President, CFO C/O AVON PRODUCTS, INC., 1 AVON PLACE, SUFFERN NY 10901
Fernandez Calero Miguel Angel officer: Global President 800 W. OLYMPIC BLVD. SUITE 406, LOS ANGELES CA 90015
James A Mitarotonda director 888 SEVENTH AVENUE 17TH FL, NEW YORK NY 10019
Chan Galbato director 191 E NORTH AVENUE, CAROL STREAM IL 60188
Nancy Killefer director 3170 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042
Helen Mccluskey director 2211 REDDING ROAD, FAIRFIELD CT 06430
Lenard Tessler director C/O ALBERTSONS COMPANIES, INC., 250 E. PARKCENTER BLVD., BOISE ID 83706
W Don Cornwell director
Susan J Kropf director C/O AVON PRODUCTS INC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105-0196
Cathy D Ross director 901 44TH STREET SE, GRAND RAPIDS MI 49508
James E Thompson officer: Senior Vice President 250 EAST FIFTH STREET, CINCINNATI OH 45202
Charles H Noski director ONE PICKWICK PLAZA, GREENWICH CT 06830
Steven F Mayer director 11812 SAN VICENTE BLVD. # 300, LOS ANGELES CA 90049
Sherilyn S Mccoy director, officer: CEO JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
James S Scully officer: EVP, COO C/O J. CREW GROUP, INC., 770 BROADWAY, NEW YORK NY 10003