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Herbalife Nutrition Gross Margin %

: 77.32% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Herbalife Nutrition's Gross Profit for the three months ended in Jun. 2022 was $1,077 Mil. Herbalife Nutrition's Revenue for the three months ended in Jun. 2022 was $1,393 Mil. Therefore, Herbalife Nutrition's Gross Margin % for the quarter that ended in Jun. 2022 was 77.32%.


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

HLF' s Gross Margin % Range Over the Past 10 Years
Min: 77.64   Med: 80.27   Max: 81.21
Current: 77.64


During the past 13 years, the highest Gross Margin % of Herbalife Nutrition was 81.21%. The lowest was 77.64%. And the median was 80.27%.

HLF's Gross Margin % is ranked better than
97.24% of 1736 companies
in the Consumer Packaged Goods industry
Industry Median: 25.86 vs HLF: 77.64

Herbalife Nutrition had a gross margin of 77.32% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Herbalife Nutrition was -0.60% per year.


Herbalife Nutrition Gross Margin % Historical Data

The historical data trend for Herbalife Nutrition'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.

Herbalife Nutrition Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 80.83 81.21 80.36 79.24 78.64

Herbalife Nutrition Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 79.18 78.67 77.50 77.01 77.32

Competitive Comparison

For the Packaged Foods subindustry, Herbalife Nutrition'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.

   

Herbalife Nutrition Gross Margin % Distribution

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

* The bar in red indicates where Herbalife Nutrition's Gross Margin % falls into.



Herbalife Nutrition Gross Margin % Calculation

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

Herbalife Nutrition's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=4563.5 / 5802.8
=(Revenue - Cost of Goods Sold) / Revenue
=(5802.8 - 1239.3) / 5802.8
=78.64 %

Herbalife Nutrition's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1076.9 / 1392.7
=(Revenue - Cost of Goods Sold) / Revenue
=(1392.7 - 315.8) / 1392.7
=77.32 %

* 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.


Herbalife Nutrition  (NYSE:HLF) 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

Herbalife Nutrition had a gross margin of 77.32% for the quarter that ended in Jun. 2022 => 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.


Herbalife Nutrition Gross Margin % Related Terms

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


Herbalife Nutrition Business Description

Herbalife Nutrition logo
Traded in Other Exchanges
Address
Ugland House, South Church Street, P.O. Box 309GT, Grand Cayman, CYM
Herbalife Nutrition Ltd is an international nutrition company. The company has five revenue segments: weight management; targeted nutrition; energy, sports, and fitness; outer nutrition; and literature, promotional, and other. The most important segment, weight management, contributing more than 50% of revenue, has as representative products protein drinks, powder, and bars, and herbal tea concentrates, among others. The targeted nutrition segment offers dietary and nutritional supplements rich in herbs, minerals, and vitamins. Energy, sports, and fitness offers energy drinks, while outer nutrition offers facial skin-care, body-care, and hair-care products. Geographically, the main segments are North America, Mexico, South and Central America, EMEA, Asia-Pacific, and China.
Executives
Del Genes Celine director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Mulligan Donal L director ONE GENERAL MILLS BLVD MINNEAPOLIS MN 55426
Jones Kevin M. director 1 FANATICAL PLACE CITY OF WINDCREST SAN ANTONIO TX 78218
L'helias Sophie director 800 WEST OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Irani Jehangir D officer: Principal Accounting Officer 800 WEST OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Agwunobi John O officer: Co-President/Chief H&N Officer 4800 NORTH SCOTTSDALE ROAD SCOTTSDALE AZ 85251
Wang Henry C officer: EVP, General Counsel 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Graziano Nick director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105
Lefevre Alan W director HERBALIFE NUTRITION 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Mendoza Juan Miguel director 800 W. OLYMPIC BLVD. SUITE 406 LOS ANGELES CA 90015
Guo Woody officer: SVP, Managing Director, China 800 W. OLYMPIC BLVD., SUITE #406 LOS ANGELES CA 90015
Amezquita Alexander officer: SVP, Finance & Strat. Planning 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Harms Thomas officer: SVP, China & APAC 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015
Schissel Mark J officer: EVP, WW Operations 800 W. OLYMPIC BLVD., SUITE 406 LOS ANGELES CA 90015

Herbalife Nutrition Headlines

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