Sleep Number Corp gross margin has been in long-term decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Sleep Number's Gross Margin % or its related term are showing as below:
SNBR'
s Gross Margin % Range Over the Past 10 Years
Min: 56.87 Med: 61.07 Max: 62.27
Current: 57.58
During the past 13 years, the highestGross Margin % of Sleep Number was 62.27%. The lowest was 56.87%. And the median was 61.07%.
SNBR's Gross Margin % is ranked better than 93.86% of 407
companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 28.3
vs SNBR: 57.58
Sleep Number had a gross margin of 58.70% for the quarter that ended in Mar. 2024 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sleep Number was -1.50% per year.
Sleep Number Gross Margin % Historical Data
The historical data trend for Sleep Number'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.
Competitive Comparison of Sleep Number's Gross Margin %
For the Furnishings, Fixtures & Appliances subindustry, Sleep Number'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.
Sleep Number's Gross Margin % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Sleep Number's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sleep Number's Gross Margin % falls into.
* 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.
Sleep Number (NAS:SNBR) 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
Sleep Number had a gross margin of 58.70% for the quarter that ended in Mar. 2024 => 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.
Sleep Number Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sleep Number's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sleep Number Corp. offers individualized mattresses and sleep solutions. Consumers can customize Sleep Number bedding to suit their comforts. The company utilizes algorithms and biometric data for customizations. Revenue is generated through marketing and selling bedding through two distribution channels: company-controlled, including direct-to-consumer retail and online sales; and wholesale, which sells through selected wholesale and retail customers. Almost all revenue comes from company-controlled retail sales. Sleep Number Corp. sells its products throughout the United States.
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