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Ashley (Laura) Holdings (LSE:ALY) Gross Margin % : 37.32% (As of Dec. 2019)


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What is Ashley (Laura) Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ashley (Laura) Holdings's Gross Profit for the six months ended in Dec. 2019 was £40.9 Mil. Ashley (Laura) Holdings's Revenue for the six months ended in Dec. 2019 was £109.6 Mil. Therefore, Ashley (Laura) Holdings's Gross Margin % for the quarter that ended in Dec. 2019 was 37.32%.

Warning Sign:

Ashley (Laura) Holdings PLC gross margin has been in long term decline. The average rate of decline per year is -3.6%.


The historical rank and industry rank for Ashley (Laura) Holdings's Gross Margin % or its related term are showing as below:

LSE:ALY' s Gross Margin % Range Over the Past 10 Years
Min: 35.31   Med: 42.52   Max: 45.41
Current: 34.72


During the past 13 years, the highest Gross Margin % of Ashley (Laura) Holdings was 45.41%. The lowest was 35.31%. And the median was 42.52%.

LSE:ALY's Gross Margin % is not ranked
in the Retail - Cyclical industry.
Industry Median: 36.56 vs LSE:ALY: 34.72

Ashley (Laura) Holdings had a gross margin of 37.32% for the quarter that ended in Dec. 2019 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Ashley (Laura) Holdings was -3.60% per year.


Ashley (Laura) Holdings Gross Margin % Historical Data

The historical data trend for Ashley (Laura) Holdings'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.

Ashley (Laura) Holdings Gross Margin % Chart

Ashley (Laura) Holdings Annual Data
Trend Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jun17 Jun18 Jun19
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.51 42.52 39.42 38.14 35.31

Ashley (Laura) Holdings Semi-Annual Data
Jul09 Jan10 Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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 38.53 37.71 38.24 32.03 37.32

Competitive Comparison of Ashley (Laura) Holdings's Gross Margin %

For the Department Stores subindustry, Ashley (Laura) Holdings'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.


Ashley (Laura) Holdings's Gross Margin % Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where Ashley (Laura) Holdings's Gross Margin % falls into.



Ashley (Laura) Holdings Gross Margin % Calculation

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

Ashley (Laura) Holdings's Gross Margin for the fiscal year that ended in Jun. 2019 is calculated as

Gross Margin % (A: Jun. 2019 )=Gross Profit (A: Jun. 2019 ) / Revenue (A: Jun. 2019 )
=82.1 / 232.5
=(Revenue - Cost of Goods Sold) / Revenue
=(232.5 - 150.4) / 232.5
=35.31 %

Ashley (Laura) Holdings's Gross Margin for the quarter that ended in Dec. 2019 is calculated as


Gross Margin % (Q: Dec. 2019 )=Gross Profit (Q: Dec. 2019 ) / Revenue (Q: Dec. 2019 )
=40.9 / 109.6
=(Revenue - Cost of Goods Sold) / Revenue
=(109.6 - 68.7) / 109.6
=37.32 %

* 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.


Ashley (Laura) Holdings  (LSE:ALY) 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

Ashley (Laura) Holdings had a gross margin of 37.32% for the quarter that ended in Dec. 2019 => Competition eroding margins


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.


Ashley (Laura) Holdings Gross Margin % Related Terms

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


Ashley (Laura) Holdings (LSE:ALY) Business Description

Traded in Other Exchanges
N/A
Address
27 Bagleys Lane, Fulham, London, GBR, SW6 2QA
Ashley (Laura) Holdings PLC is an international lifestyle brand, which specializes in retailing furniture, home accessories, decorating and fashion products. Its two operating segments are Retail and Non-Retail. Retail revenue reflects sales through its Stores; E-Commerce and Mail Order and Hotel. Its Non-retail revenue includes Licensing, Franchising, and Manufacturing. The company generates maximum revenue from the Retail segment which includes Stores. Geographically, it derives a majority of revenue from the UK, Ireland and France and also has a presence in Japan and the Rest of the World.

Ashley (Laura) Holdings (LSE:ALY) Headlines

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