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Compagnie Financiere Richemont Gross Margin %

: 62.19% (As of Mar. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Compagnie Financiere Richemont's Gross Profit for the six months ended in Mar. 2022 was $7,036 Mil. Compagnie Financiere Richemont's Revenue for the six months ended in Mar. 2022 was $11,315 Mil. Therefore, Compagnie Financiere Richemont's Gross Margin % for the quarter that ended in Mar. 2022 was 62.19%.

Warning Sign:

Compagnie Financiere Richemont SA gross margin has been in long-term decline. The average rate of decline per year is -1.1%.


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

CFRHF' s Gross Margin % Range Over the Past 10 Years
Min: 59.81   Med: 64.05   Max: 66.05
Current: 62.72


During the past 13 years, the highest Gross Margin % of Compagnie Financiere Richemont was 66.05%. The lowest was 59.81%. And the median was 64.05%.

CFRHF's Gross Margin % is ranked better than
88.68% of 1095 companies
in the Retail - Cyclical industry
Industry Median: 37.69 vs CFRHF: 62.72

Compagnie Financiere Richemont had a gross margin of 62.19% for the quarter that ended in Mar. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Compagnie Financiere Richemont was -1.10% per year.


Compagnie Financiere Richemont Gross Margin % Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

Compagnie Financiere Richemont Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 65.23 61.80 60.48 59.81 62.70

Compagnie Financiere Richemont Semi-Annual Data
Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22
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 58.49 57.78 61.26 63.30 62.19

Competitive Comparison

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.

   

Compagnie Financiere Richemont Gross Margin % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's Gross Margin % falls into.



Compagnie Financiere Richemont Gross Margin % Calculation

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

Compagnie Financiere Richemont's Gross Margin for the fiscal year that ended in Mar. 2022 is calculated as

Gross Margin % (A: Mar. 2022 )=Gross Profit (A: Mar. 2022 ) / Revenue (A: Mar. 2022 )
=13245.6 / 21124.449339207
=(Revenue - Cost of Goods Sold) / Revenue
=(21124.449339207 - 7878.8546255507) / 21124.449339207
=62.70 %

Compagnie Financiere Richemont's Gross Margin for the quarter that ended in Mar. 2022 is calculated as


Gross Margin % (Q: Mar. 2022 )=Gross Profit (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=7036.3 / 11314.977973568
=(Revenue - Cost of Goods Sold) / Revenue
=(11314.977973568 - 4278.6343612335) / 11314.977973568
=62.19 %

* 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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

Compagnie Financiere Richemont had a gross margin of 62.19% for the quarter that ended in Mar. 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.


Compagnie Financiere Richemont Gross Margin % Related Terms

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Compagnie Financiere Richemont Business Description

Compagnie Financiere Richemont logo
Address
50, Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up over 70% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 56% of revenue and over 95% of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, and Montblanc. Online businesses include Yoox Net-a-Porter.

Compagnie Financiere Richemont Headlines

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