IG Design Group (LSE:IGR) Gross Margin %

: 20.94% (As of Sep. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. IG Design Group's Gross Profit for the six months ended in Sep. 2023 was £75.1 Mil. IG Design Group's Revenue for the six months ended in Sep. 2023 was £358.8 Mil. Therefore, IG Design Group's Gross Margin % for the quarter that ended in Sep. 2023 was 20.94%.

Warning Sign:

IG Design Group PLC gross margin has been in long-term decline. The average rate of decline per year is -7.7%.

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

LSE:IGR' s Gross Margin % Range Over the Past 10 Years
Min: 12.66 Med: 17.55 Max: 21.37
Current: 16.94

During the past 13 years, the highest Gross Margin % of IG Design Group was 21.37%. The lowest was 12.66%. And the median was 17.55%.

LSE:IGR's Gross Margin % is ranked worse than
83.39% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs LSE:IGR: 16.94

IG Design Group had a gross margin of 20.94% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for IG Design Group was -7.70% per year.

IG Design Group Gross Margin % Historical Data

The historical data trend for IG Design Group'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.

IG Design Group Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Gross Margin %

18.47

15.09

17.62

12.66

14.80

IG Design Group Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Gross Margin %																16.25	9.05	16.62	12.23	20.94

Competitive Comparison

For the Specialty Retail subindustry, IG Design Group'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.

IG Design Group Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, IG Design Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where IG Design Group's Gross Margin % falls into.

IG Design Group Gross Margin % Calculation

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

IG Design Group's Gross Margin for the fiscal year that ended in Mar. 2023 is calculated as

Gross Margin % (A: Mar. 2023 )	=	Gross Profit (A: Mar. 2023 )	/	Revenue (A: Mar. 2023 )
	=	108.6	/	733.615
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(733.615 - 625.061)	/	733.615
	=	14.80 %

IG Design Group's Gross Margin for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )	=	Gross Profit (Q: Sep. 2023 )	/	Revenue (Q: Sep. 2023 )
	=	75.1	/	358.792
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(358.792 - 283.663)	/	358.792
	=	20.94 %

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.

IG Design Group (LSE:IGR) 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

IG Design Group had a gross margin of 20.94% for the quarter that ended in Sep. 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.

IG Design Group Gross Margin % Related Terms

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IG Design Group (LSE:IGR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » IG Design Group PLC (LSE:IGR) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

IGR.GB:UK

Address

Howard Way, Howard House, Interchange Park, Newport Pagnell, GBR, MK16 9PX

Website

https://www.thedesigngroup.com

IG Design Group PLC is a UK-based company that operates in a single segment of design, manufacture, and distribution of Celebrations, Craft and creative play, Stationery, Gifting, and 'Not-for-resale' consumable products. Its Celebrations products are greetings cards, gift wrap, Christmas crackers, gift bags, and partyware. Gifting items include food and non-food gifts, photo Frames and Albums, and Calendars. Its Craft product ranges include Ribbons and Trim, Sewing Patterns, Buttons, Needlecrafts, and Kids Craft lines. The not-For-resale category includes Paper Twist Handle Bags and Polaris. It operates in two geographical segments: DG Americas, which includes overseas operations; and DG International, which consists of the UK and associated Asian operations, Europe, and Australia.