Topsports International Holdings (HKSE:06110) Gross Margin %

: 44.73% (As of Aug. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Topsports International Holdings's Gross Profit for the six months ended in Aug. 2023 was HK$6,846 Mil. Topsports International Holdings's Revenue for the six months ended in Aug. 2023 was HK$15,306 Mil. Therefore, Topsports International Holdings's Gross Margin % for the quarter that ended in Aug. 2023 was 44.73%.

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

HKSE:06110' s Gross Margin % Range Over the Past 10 Years
Min: 40.77 Med: 41.79 Max: 43.37
Current: 41.26

During the past 7 years, the highest Gross Margin % of Topsports International Holdings was 43.37%. The lowest was 40.77%. And the median was 41.79%.

HKSE:06110's Gross Margin % is ranked better than
58.21% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs HKSE:06110: 41.26

Topsports International Holdings had a gross margin of 44.73% for the quarter that ended in Aug. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Topsports International Holdings was 0.30% per year.

Topsports International Holdings Gross Margin % Historical Data

The historical data trend for Topsports International Holdings'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.

Topsports International Holdings Annual Data

Trend

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Gross Margin %

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41.79

42.11

40.77

43.37

41.68

Topsports International Holdings Semi-Annual Data
	Feb17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23
Gross Margin %	Get a 7-Day Free Trial								44.46	42.33	45.62	37.92	44.73

Competitive Comparison

For the Apparel Retail subindustry, Topsports International Holdings'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.

Topsports International Holdings Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Topsports International Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Topsports International Holdings's Gross Margin % falls into.

Topsports International Holdings Gross Margin % Calculation

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

Topsports International Holdings'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 )
	=	12949.4	/	31068.457
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(31068.457 - 18119.021)	/	31068.457
	=	41.68 %

Topsports International Holdings's Gross Margin for the quarter that ended in Aug. 2023 is calculated as

Gross Margin % (Q: Aug. 2023 )	=	Gross Profit (Q: Aug. 2023 )	/	Revenue (Q: Aug. 2023 )
	=	6846.2	/	15306.341
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(15306.341 - 8460.191)	/	15306.341
	=	44.73 %

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.

Topsports International Holdings (HKSE:06110) 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

Topsports International Holdings had a gross margin of 44.73% for the quarter that ended in Aug. 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.

Topsports International Holdings Gross Margin % Related Terms

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Topsports International Holdings (HKSE:06110) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Topsports International Holdings Ltd (HKSE:06110) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

TPSRF:USA 6110:Mexico

Address

No. 928 Liuzhou Road, 22nd Floor, Belle International Building, Xuhui District, Shanghai, CHN

Website

https://www.topsports.com.cn

Topsports is the largest sportswear retailer in China, generating the majority of its revenue from selling products of international sportswear brands. The business operates as an intermediary between brand owners and consumers seeking to buy sportswear. The firm operates more than 6,500 stores directly as of the end of fiscal 2023, and most of these "single-brand" stores have been opened under the names of sportswear brands that it partners with, such as Nike and Adidas. In addition to these two sportswear giants, Topsports also has partnerships with sportswear brands such as Puma, Li Ning, Asics, and The North Face. While most of Topsports' sales take place in stores, the firm also operates online shops under the Topsports brand on major e-commerce platforms such as Alibaba and JD.com.

Topsports International Holdings (HKSE:06110) Headlines

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