Global Fashion Group (OTCPK:GLFGF) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Global Fashion Group Operating Margin % Related Terms
Global Fashion Group Operating Margin % Historical Data
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The historical data trend for Global Fashion Group's Operating 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.
GLFGF vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, Global Fashion Group's Operating Margin %, along with its competitors' market caps and Operating 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.
Global Fashion Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Global Fashion Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Global Fashion Group's Operating Margin % falls into.
Global Fashion Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Global Fashion Group's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Global Fashion Group (GLFGF) has a Operating Margin % of -2.97% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Global Fashion Group and its competitors. According to the industry distribution chart, Global Fashion Group ranks #980 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 86.9%.
Is Global Fashion Group's Operating Margin % too high?
Global Fashion Group's current Operating Margin % is -2.97%. Based on the distribution chart, Global Fashion Group ranks #980 out of 1128 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Global Fashion Group has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does Global Fashion Group's Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Global Fashion Group ranks #980 out of 1128 companies for Operating Margin %. This places Global Fashion Group in the lower half of its industry. The industry median Operating Margin % is 3.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Global Fashion Group and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global Fashion Group's current Operating Margin % is -2.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Fashion Group stock overvalued right now?
Global Fashion Group (GLFGF) has a current Operating Margin % of -2.97%. The stock's GF Value™ is $0.21, compared to a current price of $0.33 — trading 57.3% above its estimated fair value. The current Operating Margin % is -2.97%. Global Fashion Group's overall GF Score™ is 41/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Global Fashion Group (GLFGF), the current Operating Margin % is -2.97% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Global Fashion Group (GLFGF) Overvalued in 2026?
Based on GuruFocus' analysis, Global Fashion Group stock appears to be overvalued.
The current stock price of $0.33 is trading 57.3% above its estimated GF Value™ of $0.21.
Key valuation signals for GLFGF:
Operating Margin %: -2.97%
GF Value™: $0.21 vs. price of $0.33 (57.3% above fair value)
No single metric tells the full story. See the GLFGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global Fashion Group SA is a fashion and lifestyle e-commerce and associated ancillary services such as marketing, technology, payment, warehousing, and logistics services. The Group offers a wide assortment of international and local fashion brands, as well as a selection of its label brands. The Group consists of three operating segments: ANZ - GFG operates under the THE ICONIC brand, launched in 2011, in Australia and New Zealand, LATAM - GFG operates under the dafiti brand, launched in 2011, in Brazil and Colombia, SEA - GFG operates under the ZALORA brand, launched in 2012, in Indonesia, the Philippines, Singapore, Malaysia and Hong Kong. The majority of revenue is from ANZ.
41GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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