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PreVu (PRVU) Gross Margin % : 13.64% (As of Apr. 2008)


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What is PreVu Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. PreVu's Gross Profit for the three months ended in Apr. 2008 was $5.0 Mil. PreVu's Revenue for the three months ended in Apr. 2008 was $36.4 Mil. Therefore, PreVu's Gross Margin % for the quarter that ended in Apr. 2008 was 13.64%.


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


PRVU's Gross Margin % is not ranked *
in the Retail - Cyclical industry.
Industry Median: 36.74
* Ranked among companies with meaningful Gross Margin % only.

PreVu had a gross margin of 13.64% for the quarter that ended in Apr. 2008 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for PreVu was 0.00% per year.


PreVu Gross Margin % Historical Data

The historical data trend for PreVu'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.

PreVu Gross Margin % Chart

PreVu Annual Data
Trend Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Jan04 Jan05 Jan06 Jan07
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.70 28.23 32.05 34.98 27.08

PreVu Quarterly Data
Jul03 Oct03 Jan04 Apr04 Jul04 Oct04 Jan05 Apr05 Jul05 Oct05 Jan06 Apr06 Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08
Gross Margin % Get a 7-Day Free Trial 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 14.54 -5.56 13.27 35.59 13.64

Competitive Comparison of PreVu's Gross Margin %

For the Apparel Retail subindustry, PreVu'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.


PreVu's Gross Margin % Distribution in the Retail - Cyclical Industry

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

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



PreVu Gross Margin % Calculation

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

PreVu's Gross Margin for the fiscal year that ended in Jan. 2007 is calculated as

Gross Margin % (A: Jan. 2007 )=Gross Profit (A: Jan. 2007 ) / Revenue (A: Jan. 2007 )
=87 / 321.262
=(Revenue - Cost of Goods Sold) / Revenue
=(321.262 - 234.251) / 321.262
=27.08 %

PreVu's Gross Margin for the quarter that ended in Apr. 2008 is calculated as


Gross Margin % (Q: Apr. 2008 )=Gross Profit (Q: Apr. 2008 ) / Revenue (Q: Apr. 2008 )
=5 / 36.435
=(Revenue - Cost of Goods Sold) / Revenue
=(36.435 - 31.464) / 36.435
=13.64 %

* 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.


PreVu  (OTCPK:PRVU) 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

PreVu had a gross margin of 13.64% for the quarter that ended in Apr. 2008 => No sustainable 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.


PreVu Gross Margin % Related Terms

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


PreVu (PRVU) Business Description

Traded in Other Exchanges
N/A
Address
7401 Boone Avenue North, Brooklyn Park, MN, USA, 55428
PreVu Inc is a retailer of leather outerwear, accessories and apparel in the United States. The company's products include men's and women's fashion leather jackets, handbags and other accessories.
Executives
William F Farley director 700 SOUTH SECOND STREET, #90, MINNEAPOLIS MN 55402
Michael M Searles director, officer: Chief Executive Officer 7401 BOONE AVENUE NORTH BROOKLYN PARK MN 55428
Michael T Sweeney director GOLDNER HAWN, 3700 WELLS FARGO CENTER, 90 SOUTH 7TH ST, MINNEAPOLIS MN 55402
R. Ted Weschler, director, 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE VA 22902
Peninsula Investment Partners, L.p. 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
Peninsula Capital Advisors Llc 10 percent owner 404B EAST MAIN STREET, 2ND FLOOR, CHARLOTTESVILLE, VA 22902
Michael T Cowhing director C/O NEWELL RUBBERMAID INC., THREE GLENLAKE PKWY., ATLANTA 2Q 30328
Michael J Mccoy director 1 HORMEL PLACE, AUSTIN TX 55912
Peter G Michielutti officer: Executive VP, CFO & COO 2400 XENIUM LANE NORTH PLYMOUTH MN 55441
Joel N Waller director 2400 XENIUM LANE NORTH PLYMOUTH MN 55441
Lyle Berman director 10275 WAYZATA BOULEVARD, SUITE 100, MINNETONKA MN 55305
Cheryl L Vitali director
Jenele C Grassle officer: Vice President 605 HWY 169 N, SUITE 400, MINNEAPOLIS MN 55441

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