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Forward Fashion (International) Holdings Co (HKSE:02528) Gross Margin % : 46.26% (As of Dec. 2023)


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What is Forward Fashion (International) Holdings Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Forward Fashion (International) Holdings Co's Gross Profit for the six months ended in Dec. 2023 was HK$232 Mil. Forward Fashion (International) Holdings Co's Revenue for the six months ended in Dec. 2023 was HK$502 Mil. Therefore, Forward Fashion (International) Holdings Co's Gross Margin % for the quarter that ended in Dec. 2023 was 46.26%.

Warning Sign:

Forward Fashion (International) Holdings Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.6%.


The historical rank and industry rank for Forward Fashion (International) Holdings Co's Gross Margin % or its related term are showing as below:

HKSE:02528' s Gross Margin % Range Over the Past 10 Years
Min: 44.81   Med: 52.09   Max: 55.32
Current: 46.42


During the past 8 years, the highest Gross Margin % of Forward Fashion (International) Holdings Co was 55.32%. The lowest was 44.81%. And the median was 52.09%.

HKSE:02528's Gross Margin % is ranked better than
66.88% of 1096 companies
in the Retail - Cyclical industry
Industry Median: 36.485 vs HKSE:02528: 46.42

Forward Fashion (International) Holdings Co had a gross margin of 46.26% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Forward Fashion (International) Holdings Co was -2.60% per year.


Forward Fashion (International) Holdings Co Gross Margin % Historical Data

The historical data trend for Forward Fashion (International) Holdings Co'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.

Forward Fashion (International) Holdings Co Gross Margin % Chart

Forward Fashion (International) Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 52.05 44.81 53.01 47.32 46.42

Forward Fashion (International) Holdings Co Semi-Annual Data
Dec16 Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.57 49.27 45.24 46.58 46.26

Competitive Comparison of Forward Fashion (International) Holdings Co's Gross Margin %

For the Apparel Retail subindustry, Forward Fashion (International) Holdings Co'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.


Forward Fashion (International) Holdings Co's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Forward Fashion (International) Holdings Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Forward Fashion (International) Holdings Co's Gross Margin % falls into.



Forward Fashion (International) Holdings Co Gross Margin % Calculation

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

Forward Fashion (International) Holdings Co'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 )
=467.8 / 1007.801
=(Revenue - Cost of Goods Sold) / Revenue
=(1007.801 - 539.996) / 1007.801
=46.42 %

Forward Fashion (International) Holdings Co'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 )
=232.4 / 502.376
=(Revenue - Cost of Goods Sold) / Revenue
=(502.376 - 269.998) / 502.376
=46.26 %

* 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.


Forward Fashion (International) Holdings Co  (HKSE:02528) 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

Forward Fashion (International) Holdings Co had a gross margin of 46.26% 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.


Forward Fashion (International) Holdings Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Forward Fashion (International) Holdings Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Forward Fashion (International) Holdings Co (HKSE:02528) Business Description

Traded in Other Exchanges
N/A
Address
The Gateway, Harbour City, Suite 1204, 12th Floor, Tower 6, Tsim Sha Tsui, Kowloon, Hong Kong, HKG
Forward Fashion (International) Holdings Co Ltd is engaged in the retail of fashion apparel of international brands ranging from designer label brands, and popular brands to up-and-coming brands in Greater China. Its brands include UM, UM IXOX, and IXOX. It has opened mono-brand stores in Greater China for the brands BLACK BARRETT, CK CALVIN KLEIN, Calvin Klein Jeans, Calvin Klein Performance, Calvin Klein Underwear, EA7, Ed Hardy, Hogan, Moschino, Neil Barrett, Philipp Plein, Tommy Hilfiger and Under Armour. It has a business presence in Mainland China, Macau, Hong Kong, and Other regions.

Forward Fashion (International) Holdings Co (HKSE:02528) Headlines

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