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Arezzo Industria E Comercio (BSP:ARZZ3) Gross Margin % : 55.94% (As of Dec. 2023)


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What is Arezzo Industria E Comercio Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Arezzo Industria E Comercio's Gross Profit for the three months ended in Dec. 2023 was R$797 Mil. Arezzo Industria E Comercio's Revenue for the three months ended in Dec. 2023 was R$1,425 Mil. Therefore, Arezzo Industria E Comercio's Gross Margin % for the quarter that ended in Dec. 2023 was 55.94%.


The historical rank and industry rank for Arezzo Industria E Comercio's Gross Margin % or its related term are showing as below:

BSP:ARZZ3' s Gross Margin % Range Over the Past 10 Years
Min: 42.47   Med: 46.37   Max: 54.24
Current: 54.24


During the past 13 years, the highest Gross Margin % of Arezzo Industria E Comercio was 54.24%. The lowest was 42.47%. And the median was 46.37%.

BSP:ARZZ3's Gross Margin % is ranked better than
84.79% of 1032 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 25.35 vs BSP:ARZZ3: 54.24

Arezzo Industria E Comercio had a gross margin of 55.94% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Arezzo Industria E Comercio was 3.90% per year.


Arezzo Industria E Comercio Gross Margin % Historical Data

The historical data trend for Arezzo Industria E Comercio'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.

Arezzo Industria E Comercio Gross Margin % Chart

Arezzo Industria E Comercio 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 46.19 47.47 52.63 53.94 54.24

Arezzo Industria E Comercio 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 53.76 52.36 54.33 53.78 55.94

Competitive Comparison of Arezzo Industria E Comercio's Gross Margin %

For the Footwear & Accessories subindustry, Arezzo Industria E Comercio'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.


Arezzo Industria E Comercio's Gross Margin % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arezzo Industria E Comercio's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Arezzo Industria E Comercio's Gross Margin % falls into.



Arezzo Industria E Comercio Gross Margin % Calculation

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

Arezzo Industria E Comercio'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 )
=2629.1 / 4846.768
=(Revenue - Cost of Goods Sold) / Revenue
=(4846.768 - 2217.707) / 4846.768
=54.24 %

Arezzo Industria E Comercio'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 )
=797 / 1424.631
=(Revenue - Cost of Goods Sold) / Revenue
=(1424.631 - 627.634) / 1424.631
=55.94 %

* 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.


Arezzo Industria E Comercio  (BSP:ARZZ3) 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

Arezzo Industria E Comercio had a gross margin of 55.94% for the quarter that ended in Dec. 2023 => Durable 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.


Arezzo Industria E Comercio Gross Margin % Related Terms

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Arezzo Industria E Comercio (BSP:ARZZ3) Business Description

Traded in Other Exchanges
N/A
Address
Rua Fernandes Tourinho, 147 - sala 402, Rooms 1301 and 1303, Belo Horizonte, MG, BRA, 30112000
Arezzo Industria e Comercio S.A. together with its subsidiaries engages in the manufacturing, development, molding, and sale of footwear, bags, and women's clothing and accessories. It operates more than 400 franchises and approximately 48 stores and an e-commerce website for the sale of products under the brand names Schutz, Arezzo, Alexandre Birman, Fiever, Vans, Reserva, Reserva Mini, Reserva Go, Oficina, INK, EVA, Troc, Baw, MyShoes, Carol Bassi, Brizza, Reversa, Simples Reserva, Unbrand Reserva and Anacapri. The company derives revenue through the sale of products and Royalty income.

Arezzo Industria E Comercio (BSP:ARZZ3) Headlines

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