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Sears Canada Gross Margin %

: 22.59% (As of Apr. 2017)
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Gross Margin % is calculated as gross profit divided by its revenue. Sears Canada's Gross Profit for the three months ended in Apr. 2017 was $85 Mil. Sears Canada's Revenue for the three months ended in Apr. 2017 was $376 Mil. Therefore, Sears Canada's Gross Margin % for the quarter that ended in Apr. 2017 was 22.59%.




Sears Canada had a gross margin of 22.59% for the quarter that ended in Apr. 2017 => Competition eroding margins

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


Sears Canada Gross Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Sears Canada Annual Data
Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.75 36.17 32.60 31.78 27.28

Sears Canada Quarterly Data
Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17
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 28.19 28.20 28.60 24.65 22.59

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.


Sears Canada Gross Margin % Distribution

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



Sears Canada Gross Margin % Calculation

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

Sears Canada's Gross Margin for the fiscal year that ended in Jan. 2017 is calculated as

Gross Margin % (A: Jan. 2017 )=Gross Profit (A: Jan. 2017 ) / Revenue (A: Jan. 2017 )
=540.9 / 1982.5532883259
=(Revenue - Cost of Goods Sold) / Revenue
=(1982.5532883259 - 1441.6293711598) / 1982.5532883259
=27.28 %

Sears Canada's Gross Margin for the quarter that ended in Apr. 2017 is calculated as


Gross Margin % (Q: Apr. 2017 )=Gross Profit (Q: Apr. 2017 ) / Revenue (Q: Apr. 2017 )
=85 / 376.20004465282
=(Revenue - Cost of Goods Sold) / Revenue
=(376.20004465282 - 291.21083575203) / 376.20004465282
=22.59 %

* 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.


Sears Canada  (OTCPK:SRSCQ) 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

Sears Canada had a gross margin of 22.59% for the quarter that ended in Apr. 2017 => 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.


Sears Canada Gross Margin % Related Terms


Sears Canada Gross Margin % Headlines

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