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Zalando SE (WBO:ZAL) Gross Margin % : 39.38% (As of Dec. 2023)


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What is Zalando SE Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Zalando SE's Gross Profit for the three months ended in Dec. 2023 was €1,204 Mil. Zalando SE's Revenue for the three months ended in Dec. 2023 was €3,056 Mil. Therefore, Zalando SE's Gross Margin % for the quarter that ended in Dec. 2023 was 39.38%.

Warning Sign:

Zalando SE gross margin has been in long-term decline. The average rate of decline per year is -2%.


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

WBO:ZAL' s Gross Margin % Range Over the Past 10 Years
Min: 38.75   Med: 42.54   Max: 45.1
Current: 38.75


During the past 13 years, the highest Gross Margin % of Zalando SE was 45.10%. The lowest was 38.75%. And the median was 42.54%.

WBO:ZAL's Gross Margin % is ranked better than
54.2% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.74 vs WBO:ZAL: 38.75

Zalando SE had a gross margin of 39.38% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Zalando SE was -2.00% per year.


Zalando SE Gross Margin % Historical Data

The historical data trend for Zalando SE'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.

Zalando SE Gross Margin % Chart

Zalando SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.55 42.52 41.78 39.20 38.75

Zalando SE Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 38.14 37.88 40.59 36.69 39.38

Competitive Comparison of Zalando SE's Gross Margin %

For the Internet Retail subindustry, Zalando SE'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.


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

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

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



Zalando SE Gross Margin % Calculation

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

Zalando SE's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3930.4 / 10143.1
=(Revenue - Cost of Goods Sold) / Revenue
=(10143.1 - 6212.7) / 10143.1
=38.75 %

Zalando SE's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=1203.6 / 3056.2
=(Revenue - Cost of Goods Sold) / Revenue
=(3056.2 - 1852.6) / 3056.2
=39.38 %

* 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.


Zalando SE  (WBO:ZAL) 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

Zalando SE had a gross margin of 39.38% for the quarter that ended in Dec. 2023 => 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.


Zalando SE Gross Margin % Related Terms

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


Zalando SE (WBO:ZAL) Business Description

Address
Valeska-Gert-Strabe 5, Berlin, DEU, 10243
Zalando, founded in 2008, is Europe's biggest pure-play online fashion platform. Zalando is present in 25 European countries, and its major market is the DACH region, comprising Germany, Austria, and Switzerland, which accounts for around 40% of revenue. The company commands 4% of European apparel sales and 12% market share in European online apparel sales. It has 12 fulfilment centers and presents over 7,000 brands on its platform. In 2022, Zalando had over 50 million active users (more than 10% of the population in countries where the firm has a presence) and over 7 billion site visits.

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