Gross Margin % is calculated as gross profit divided by its revenue. Big Lots's Gross Profit for the
three
months ended in Jan. 2024 was $544 Mil. Big Lots's Revenue for the
three
months ended in Jan. 2024 was $1,432 Mil. Therefore, Big Lots's Gross Margin % for the quarter that ended in Jan. 2024 was 38.01%.
Warning Sign:
Big Lots Inc gross margin has been in long-term decline. The average rate of decline per year is -2.9%.
The historical rank and industry rank for Big Lots's Gross Margin % or its related term are showing as below:
BIG'
s Gross Margin % Range Over the Past 10 Years
Min: 34.99 Med: 39.78 Max: 40.7
Current: 35.72
During the past 13 years, the highestGross Margin % of Big Lots was 40.70%. The lowest was 34.99%. And the median was 39.78%.
BIG's Gross Margin % is ranked better than 81.35% of 311
companies
in the Retail - Defensive industry
Industry Median: 22.74
vs BIG: 35.72
Big Lots had a gross margin of 38.01% for the quarter that ended in Jan. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Big Lots was -2.90% per year.
Big Lots Gross Margin % Historical Data
The historical data trend for Big Lots'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 Big Lots's Gross Margin %
For the Discount Stores subindustry, Big Lots'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.
Big Lots's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Big Lots's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Big Lots'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.
Big Lots (NYSE:BIG) 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
Big Lots had a gross margin of 38.01% for the quarter that ended in Jan. 2024 => 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.
Big Lots Gross Margin % Related Terms
Thank you for viewing the detailed overview of Big Lots's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Big Lots Inc is principally engaged in operating discount retail stores. The company provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture, electronics and accessories, and seasonal products. The company sources the merchandise from traditional and close-out channels. In addition to merchandise, the company sells gift cards, issues merchandise credits, and more. The company operates stores throughout the United States, with around one-third of its stores in California, Texas, Ohio, and Florida.
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