Operating Margin % is calculated as Operating Income divided by its Revenue. Luxxu Group's Operating Income for the
six
months ended in Dec. 2025 was HK$-24.63 Mil. Luxxu Group's Revenue for the
six
months ended in Dec. 2025 was HK$22.88 Mil. Therefore, Luxxu Group's Operating Margin % for the quarter that ended in Dec. 2025 was -107.67%.
Good Sign:
Luxxu Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Luxxu Group's Operating Margin % or its related term are showing as below:
HKSE:01327'
s Operating Margin % Range Over the Past 10 Years
Min: -167.52 Med: -76.51 Max: -11.93
Current: -66.14
HKSE:01327's Operating Margin % is ranked worse than 97.5% of 1122
companies
in the Retail - Cyclical industry
Industry Median: 3.925
vs HKSE:01327: -66.14
Luxxu Group's 5-Year Average Operating Margin % Growth Rate was 4.90% per year.
Luxxu Group's Operating Income for the
six
months ended in Dec. 2025 was HK$-24.63 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was HK$-30.57 Mil.
Warning Sign:
Luxxu Group Ltd has never been profitable in the past 3 years. It lost money every year.
Luxxu Group (HKSE:01327) 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.
Luxxu Group Operating Margin % Related Terms
Luxxu Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Luxxu 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.
For the Luxury Goods subindustry, Luxxu 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.
Luxxu Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Luxxu Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luxxu Group's Operating Margin % falls into.
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.
Luxxu 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.
Luxxu Group (HKSE:01327) has a Operating Margin % of -107.67% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Luxxu Group and its competitors. According to the industry distribution chart, Luxxu Group ranks #1094 out of 1122 companies in the Retail - Cyclical industry, placing it in the top 97.5%.
Is Luxxu Group's Operating Margin % too high?
Luxxu Group's current Operating Margin % is -107.67%. Based on the distribution chart, Luxxu Group ranks #1094 out of 1122 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Luxxu Group has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luxxu Group's Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Luxxu Group ranks #1094 out of 1122 companies for Operating Margin %. This places Luxxu Group in the lower half of its industry. The industry median Operating Margin % is 3.93. 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 3.93, based on 1,122 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 Luxxu Group and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxxu Group's current Operating Margin % is -107.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxxu Group stock overvalued right now?
Based on GuruFocus' analysis, Luxxu Group (HKSE:01327) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$1.43 — trading 472% above its estimated fair value. The current Operating Margin % is -107.67%. Luxxu Group's overall GF Score™ is 32/100 with 8 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 Luxxu Group (HKSE:01327), the current Operating Margin % is -107.67% 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 Luxxu Group (HKSE:01327) Overvalued in 2026?
Based on GuruFocus' analysis, Luxxu Group stock appears to be overvalued.
The current stock price of HK$1.43 is trading 472% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Luxxu Group to be Significantly Overvalued.
Key valuation signals for HKSE:01327:
Operating Margin %: -107.67%
GF Value™: HK$0.25 vs. price of HK$1.43 (472% above fair value)
No single metric tells the full story. See the HKSE:01327 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luxxu Group Ltd is principally engaged into the manufacture and sales of own-branded watches and jewelleries, including but not limited to diamond watches, tourbillon watches and luxury jewellery accessories, original equipment manufacturer (OEM) watches and third-party watches; and provision of exhibition services. The company has two segment manufacturing, trading and retailing business of branded watches and jewellery accessories; and assisting customers to hold exhibition. The company generates majority of revenue from Branded watches and jewellery accessories segment. The company has presence in Hong Kong, the PRC; and The PRC, excluding Hong Kong. The company generates majority of revenue from The PRC, excluding Hong Kong.
32GF Score
Get the complete analysis for HKSE:01327
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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