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Foot Locker Gross Margin %

: 23.04% (As of Apr. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Foot Locker's Gross Profit for the three months ended in Apr. 2020 was $271 Mil. Foot Locker's Revenue for the three months ended in Apr. 2020 was $1,176 Mil. Therefore, Foot Locker's Gross Margin % for the quarter that ended in Apr. 2020 was 23.04%.

Warning Sign:

Foot Locker Inc gross margin has been in long term decline. The average rate of decline per year is -1.3%.


NYSE:FL' s Gross Margin % Range Over the Past 10 Years
Min: 30.03   Med: 32.37   Max: 33.94
Current: 29.92

30.03
33.94

During the past 13 years, the highest Gross Margin % of Foot Locker was 33.94%. The lowest was 30.03%. And the median was 32.37%.

NYSE:FL's Gross Margin % is ranked higher than
58% of the 987 Companies
in the Manufacturing - Apparel & Accessories industry.

( Industry Median: 25.34 vs. NYSE:FL: 29.92 )

Foot Locker had a gross margin of 23.04% for the quarter that ended in Apr. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Foot Locker was -1.30% per year.


Foot Locker Gross Margin % 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.

Foot Locker Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 33.80 33.94 31.56 31.84 31.77

Foot Locker Quarterly Data
Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20
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 33.16 30.10 32.09 31.52 23.04

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.


Foot Locker Gross Margin % Distribution

* The bar in red indicates where Foot Locker's Gross Margin % falls into.



Foot Locker Gross Margin % Calculation

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

Foot Locker's Gross Margin for the fiscal year that ended in Jan. 2020 is calculated as

Gross Margin % (A: Jan. 2020 )=Gross Profit (A: Jan. 2020 ) / Revenue (A: Jan. 2020 )
=2543 / 8005
=(Revenue - Cost of Goods Sold) / Revenue
=(8005 - 5462) / 8005
=31.77 %

Foot Locker's Gross Margin for the quarter that ended in Apr. 2020 is calculated as


Gross Margin % (Q: Apr. 2020 )=Gross Profit (Q: Apr. 2020 ) / Revenue (Q: Apr. 2020 )
=271 / 1176
=(Revenue - Cost of Goods Sold) / Revenue
=(1176 - 905) / 1176
=23.04 %

* 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.


Foot Locker  (NYSE:FL) 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

Foot Locker had a gross margin of 23.04% for the quarter that ended in Apr. 2020 => 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.


Foot Locker Gross Margin % Related Terms


Foot Locker Gross Margin % Headlines

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