Gross Margin % is calculated as gross profit divided by its revenue. Designer Brands's Gross Profit for the
three
months ended in Jan. 2024 was $207 Mil. Designer Brands's Revenue for the
three
months ended in Jan. 2024 was $754 Mil. Therefore, Designer Brands's Gross Margin % for the quarter that ended in Jan. 2024 was 27.49%.
The historical rank and industry rank for Designer Brands's Gross Margin % or its related term are showing as below:
DBI'
s Gross Margin % Range Over the Past 10 Years
Min: 13.93 Med: 29.43 Max: 33.43
Current: 31.7
During the past 13 years, the highestGross Margin % of Designer Brands was 33.43%. The lowest was 13.93%. And the median was 29.43%.
Designer Brands had a gross margin of 27.49% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Designer Brands was 4.70% per year.
Designer Brands Gross Margin % Historical Data
The historical data trend for Designer Brands'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.
Competitive Comparison of Designer Brands's Gross Margin %
For the Footwear & Accessories subindustry, Designer Brands'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.
Designer Brands's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Designer Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Designer Brands's Gross Margin % falls into.
* 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.
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
Designer Brands had a gross margin of 27.49% for the quarter that ended in Jan. 2024 => 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.
Designer Brands Gross Margin % Related Terms
Thank you for viewing the detailed overview of Designer Brands's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Designer Brands (Designer Brands) Business Description
Designer Brands Inc is a designer, producer and retailer of footwear and accessories. The company operates in three reportable segments: the U.S. Retail segment, the Canada Retail segment, and the Brand Portfolio segment. The U.S. Retail segment operates the DSW Designer Shoe Warehouse banner through its direct-to-consumer U.S. stores and e-commerce site. The Canada Retail segment operates The Shoe Company and DSW banners through its direct-to-consumer Canada stores and e-commerce sites. The Brand Portfolio segment earns revenue from the sale of wholesale products to retailers, commissions for serving retailers as the design and buying agent for products under private labels and the sale of branded products through its direct-to-consumer e-commerce site at www.vincecamuto.com.
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