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Winc (WBEVQ) Gross Margin % : 36.50% (As of Sep. 2022)


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What is Winc Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Winc's Gross Profit for the three months ended in Sep. 2022 was $5.77 Mil. Winc's Revenue for the three months ended in Sep. 2022 was $15.81 Mil. Therefore, Winc's Gross Margin % for the quarter that ended in Sep. 2022 was 36.50%.


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


WBEVQ's Gross Margin % is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 39.73
* Ranked among companies with meaningful Gross Margin % only.

Winc had a gross margin of 36.50% for the quarter that ended in Sep. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Winc was 0.00% per year.


Winc Gross Margin % Historical Data

The historical data trend for Winc'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.

Winc Gross Margin % Chart

Winc Annual Data
Trend Dec19 Dec20 Dec21
Gross Margin %
42.28 40.73 41.80

Winc Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 42.28 38.69 40.33 43.51 36.50

Competitive Comparison of Winc's Gross Margin %

For the Beverages - Wineries & Distilleries subindustry, Winc'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.


Winc's Gross Margin % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Winc's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Winc's Gross Margin % falls into.



Winc Gross Margin % Calculation

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

Winc's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=30.1 / 72.069
=(Revenue - Cost of Goods Sold) / Revenue
=(72.069 - 41.944) / 72.069
=41.80 %

Winc's Gross Margin for the quarter that ended in Sep. 2022 is calculated as


Gross Margin % (Q: Sep. 2022 )=Gross Profit (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=5.8 / 15.806
=(Revenue - Cost of Goods Sold) / Revenue
=(15.806 - 10.037) / 15.806
=36.50 %

* 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.


Winc  (OTCPK:WBEVQ) 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

Winc had a gross margin of 36.50% for the quarter that ended in Sep. 2022 => 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.


Winc Gross Margin % Related Terms

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


Winc (WBEVQ) Business Description

Traded in Other Exchanges
N/A
Address
1751 Berkeley Street, Studio 3, Santa Monica, CA, USA, 90404
Winc Inc is a wine company in the United States. It has a direct-to-consumer model, which involves the company bottling, labeling, and distributing wine under its own winery license. It also features wines at select retailers and restaurants nationwide. It sources from vineyards and works with winemakers and ships all wine, domestic and international, in bulk containers to a centralized winemaking and bottling facility on California's Central Coast.
Executives
Deer Vii & Co. L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVE, LARCHMONT NY 10538
Wahoowa Ventures Llc 10 percent owner 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Alesia Lee Pinney director AVALARA, INC., 255 SOUTH KING ST., SUITE 1800, SEATTLE WA 98104
Goblue Ventures Llc 10 percent owner 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Brian Patrick Smith director, 10 percent owner, officer: President C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Carol Brault officer: Chief Financial Officer C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Erin K Green officer: Chief Operating Officer C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Xiangwei Weng director C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Laura Joukovski director C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Thelen Matthew Jonathan Alan officer: See Remarks C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
Geoffrey Mcfarlane director, 10 percent owner, officer: Chief Executive Officer C/O WINC, INC., 1751 BERKELEY ST, STUDIO 3, SANTA MONICA CA 90404
15 Angels Ii Llc 10 percent owner 1865 PALMER AVENUE, SUITE 104, LARCHMONT NY 10538
Patrick M Delong director 1222 ARROYO SARCO, NAPA CA 94558
Deer Viii & Co. Ltd. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Deer Viii & Co. L.p. 10 percent owner C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538