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Seven & i Holdings Co (TSE:3382) Gross Margin %

: 29.35% (As of Feb. 2024)
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Gross Margin % is calculated as gross profit divided by its revenue. Seven & i Holdings Co's Gross Profit for the three months ended in Feb. 2024 was 円848,776 Mil. Seven & i Holdings Co's Revenue for the three months ended in Feb. 2024 was 円2,891,546 Mil. Therefore, Seven & i Holdings Co's Gross Margin % for the quarter that ended in Feb. 2024 was 29.35%.

Warning Sign:

Seven & i Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -5.1%.


The historical rank and industry rank for Seven & i Holdings Co's Gross Margin % or its related term are showing as below:

TSE:3382' s Gross Margin % Range Over the Past 10 Years
Min: 28   Med: 35.62   Max: 39.65
Current: 29.73


During the past 13 years, the highest Gross Margin % of Seven & i Holdings Co was 39.65%. The lowest was 28.00%. And the median was 35.62%.

TSE:3382's Gross Margin % is ranked better than
72.35% of 311 companies
in the Retail - Defensive industry
Industry Median: 22.74 vs TSE:3382: 29.73

Seven & i Holdings Co had a gross margin of 29.35% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Seven & i Holdings Co was -5.10% per year.


Seven & i Holdings Co Gross Margin % Historical Data

The historical data trend for Seven & i Holdings Co'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.

Seven & i Holdings Co Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.19 39.65 31.23 28.00 29.73

Seven & i Holdings Co Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 28.78 29.54 30.75 29.29 29.35

Competitive Comparison

For the Grocery Stores subindustry, Seven & i Holdings Co'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.


Seven & i Holdings Co Gross Margin % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Seven & i Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Seven & i Holdings Co's Gross Margin % falls into.



Seven & i Holdings Co Gross Margin % Calculation

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

Seven & i Holdings Co's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Gross Margin % (A: Feb. 2024 )=Gross Profit (A: Feb. 2024 ) / Revenue (A: Feb. 2024 )
=3410834 / 11471753
=(Revenue - Cost of Goods Sold) / Revenue
=(11471753 - 8060919) / 11471753
=29.73 %

Seven & i Holdings Co's Gross Margin for the quarter that ended in Feb. 2024 is calculated as


Gross Margin % (Q: Feb. 2024 )=Gross Profit (Q: Feb. 2024 ) / Revenue (Q: Feb. 2024 )
=848776 / 2891546
=(Revenue - Cost of Goods Sold) / Revenue
=(2891546 - 2042770) / 2891546
=29.35 %

* 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.


Seven & i Holdings Co  (TSE:3382) 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

Seven & i Holdings Co had a gross margin of 29.35% for the quarter that ended in Feb. 2024 => 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.


Seven & i Holdings Co Gross Margin % Related Terms

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


Seven & i Holdings Co (TSE:3382) Business Description

Traded in Other Exchanges
Address
8-8, Nibancho, Chiyoda-ku, Tokyo, JPN, 102-8452
Seven & i Holdings operates 7-Eleven, the world's largest convenience store chain, with nearly 72,000 stores globally. C-store operations, mainly in Japan and North America, represent 75% of group sales (54% of operating revenue) and nearly 85% of operating profits. 7-Eleven Japan, the market leader in Japan's C-store industry, has acquired 45% value share and 38% share in store count. 7-Eleven Inc., the largest C-store chain in the U.S., made a $21 billion acquisition of Speedway in 2020. The deal lifted its total store count to about 13,700. Other retail activities including superstores, department stores, and specialty retailers either earn low margins or are in the red. The financial business, mainly ATM operations, is the other key profit contributor.

Seven & i Holdings Co (TSE:3382) Headlines

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