Gross Margin % is calculated as gross profit divided by its revenue. Coty's Gross Profit for the
three
months ended in Dec. 2023 was $1,124 Mil. Coty's Revenue for the
three
months ended in Dec. 2023 was $1,728 Mil. Therefore, Coty's Gross Margin % for the quarter that ended in Dec. 2023 was 65.07%.
The historical rank and industry rank for Coty's Gross Margin % or its related term are showing as below:
COTY'
s Gross Margin % Range Over the Past 10 Years
Min: 57.79 Med: 60.14 Max: 63.87
Current: 63.67
During the past 13 years, the highestGross Margin % of Coty was 63.87%. The lowest was 57.79%. And the median was 60.14%.
COTY's Gross Margin % is ranked better than 91.86% of 1807
companies
in the Consumer Packaged Goods industry
Industry Median: 24.96
vs COTY: 63.67
Coty had a gross margin of 65.07% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Coty was 1.40% per year.
Coty Gross Margin % Historical Data
The historical data trend for Coty'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.
For the Household & Personal Products subindustry, Coty'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.
Coty's Gross Margin % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Coty's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Coty'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.
Coty (NYSE:COTY) 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
Coty had a gross margin of 65.07% 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.
Coty Gross Margin % Related Terms
Thank you for viewing the detailed overview of Coty's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Coty is a global beauty maker that focuses on fragrance (59% of sales) and color cosmetics (28%), with limited exposure to skincare (5%) and body care (8%). For its fragrance business, Coty licenses luxury and high-end brands including Gucci, Burberry, Hugo Boss, Davidoff, and Calvin Klein, while its consumer cosmetics business focuses on acquired mass brands such as CoverGirl, Max Factor, Rimmel, Sally Hansen, and Bourjois. It also collaborates with social media celebrities Kim Kardashian and Kylie Jenner to launch makeup products bearing their names. By region, Coty generates close to 45% of sales from Europe, 30% from North America, 10% from Asia, and 8% from Latin America, with the rest from travel retail. German investment firm JAB is a controlling shareholder, with a 53% stake.
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