Lojas Renner (BSP:LREN3) Gross Margin % : 60.23% (As of Dec. 2023)

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What is Lojas Renner Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Lojas Renner's Gross Profit for the three months ended in Dec. 2023 was R$2,573 Mil. Lojas Renner's Revenue for the three months ended in Dec. 2023 was R$4,271 Mil. Therefore, Lojas Renner's Gross Margin % for the quarter that ended in Dec. 2023 was 60.23%.

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

BSP:LREN3' s Gross Margin % Range Over the Past 10 Years
Min: 57.23 Med: 60.13 Max: 61.09
Current: 60.23

During the past 13 years, the highest Gross Margin % of Lojas Renner was 61.09%. The lowest was 57.23%. And the median was 60.13%.

BSP:LREN3's Gross Margin % is ranked better than
86.47% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 36.63 vs BSP:LREN3: 60.23

Lojas Renner had a gross margin of 60.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lojas Renner was -0.30% per year.

Lojas Renner Gross Margin % Historical Data

The historical data trend for Lojas Renner'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.

Lojas Renner Gross Margin % Chart

Lojas Renner Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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61.09

57.23

58.39

60.17

60.23

Lojas Renner Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															60.01	61.34	59.87	59.66	60.23

Competitive Comparison of Lojas Renner's Gross Margin %

For the Department Stores subindustry, Lojas Renner'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.

Lojas Renner's Gross Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Lojas Renner's Gross Margin % distribution charts can be found below:

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

Lojas Renner Gross Margin % Calculation

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

Lojas Renner'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 )
	=	8220.6	/	13647.849
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(13647.849 - 5427.247)	/	13647.849
	=	60.23 %

Lojas Renner'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 )
	=	2572.7	/	4271.378
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4271.378 - 1698.708)	/	4271.378
	=	60.23 %

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.

Lojas Renner (BSP:LREN3) 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

Lojas Renner had a gross margin of 60.23% 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.

Lojas Renner Gross Margin % Related Terms

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Lojas Renner (BSP:LREN3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Lojas Renner SA (BSP:LREN3) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

LRENY:USA

Address

Avenida Joaquim Porto Villanova, 401, Porto Alegre, RS, BRA, 91410-400

Website

https://www.lojasrenner.com.br

Lojas Renner SA is a retailer that operates stores under brand names including Renner, Camicado, and Youcom. Renner and Youcom stores sell clothing, sports articles, accessories, and cosmetics. Camicado sells houseware and home decor products, including appliances, towels and linen, and kitchen products. Lojas retail segment provides the vast majority of the company's revenue. The company also has a financial products segment that offers credit cards to its customers. Nearly all of the company's stores and sales are in Brazil.

Lojas Renner (BSP:LREN3) Headlines

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