Pick N Pay Stores (JSE:PIK) Gross Margin % : 17.63% (As of Feb. 2024)

Pick N Pay Stores Gross Margin % Chart

Pick N Pay Stores Annual Data
	Trend	Feb15	Feb16	Feb17	Feb18	Feb19	Feb20	Feb21	Feb22	Feb23	Feb24
Gross Margin %		Get a 7-Day Free Trial					19.71	19.79	18.80	19.65	18.06

Pick N Pay Stores Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Gross Margin %	Get a 7-Day Free Trial															19.37	19.44	19.84	18.52	17.63

Competitive Comparison of Pick N Pay Stores's Gross Margin %

For the Department Stores subindustry, Pick N Pay Stores'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.

Pick N Pay Stores's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Pick N Pay Stores's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pick N Pay Stores's Gross Margin % falls into.

Pick N Pay Stores Gross Margin % Calculation

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

Pick N Pay Stores's Gross Margin for the fiscal year that ended in Feb. 2024 is calculated as

Pick N Pay Stores's Gross Margin for the quarter that ended in Feb. 2024 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.

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.

Pick N Pay Stores  (JSE:PIK) 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

Pick N Pay Stores had a gross margin of 17.63% for the quarter that ended in Feb. 2024 => No sustainable competitive advantage

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.

Pick N Pay Stores Gross Margin % Related Terms

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Pick N Pay Stores (JSE:PIK) Business Description