Market Cap : 4.95 B | Enterprise Value : 4.81 B | PE Ratio : | PB Ratio : 11.42 |
---|
SFIX has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
SFIX has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Gross Margin % is calculated as gross profit divided by its revenue. Stitch Fix's Gross Profit for the three months ended in Jan. 2021 was $216 Mil. Stitch Fix's Revenue for the three months ended in Jan. 2021 was $504 Mil. Therefore, Stitch Fix's Gross Margin % for the quarter that ended in Jan. 2021 was 42.92%.
During the past 5 years, the highest Gross Margin % of Stitch Fix was 44.57%. The lowest was 43.46%. And the median was 44.26%.
Stitch Fix had a gross margin of 42.92% for the quarter that ended in Jan. 2021 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Stitch Fix was 0.00% per year.
* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.
* The bar in red indicates where Stitch Fix's Gross Margin % falls into.
Gross Margin is the percentage of Gross Profit out of sales or Revenue.
Stitch Fix's Gross Margin for the fiscal year that ended in Jul. 2020 is calculated as
Gross Margin % (A: Jul. 2020 ) | = | Gross Profit (A: Jul. 2020 ) | / | Revenue (A: Jul. 2020 ) |
= | 754.2 | / | 1711.733 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (1711.733 - 957.523) | / | 1711.733 | |
= | 44.06 % |
Stitch Fix's Gross Margin for the quarter that ended in Jan. 2021 is calculated as
Gross Margin % (Q: Jan. 2021 ) | = | Gross Profit (Q: Jan. 2021 ) | / | Revenue (Q: Jan. 2021 ) |
= | 216.3 | / | 504.087 | |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | (504.087 - 287.744) | / | 504.087 | |
= | 42.92 % |
* All numbers are in millions except for per share data and ratio. All numbers 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
Stitch Fix had a gross margin of 42.92% for the quarter that ended in Jan. 2021 => Durable competitive advantage
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.
No Headline